@article{oai:nagoya.repo.nii.ac.jp:00008784, author = {KAWAHARA, Shinya}, issue = {3}, journal = {経済科学}, month = {Dec}, note = {This paper examines how changing the composition of government expenditure affects long-run levels of world interest rates, current accounts and welfare in a two-country overlapping generations model. We consider two types of government expenditure, one for production and the other for consumption. We show that if the complementarity between productive government expenditure and private capital is sufficiently small, increasing the composition of productive government expenditure in one country improves its current account. We also show that increasing the composition of productive government expenditure has a positive spillover effect on a country with a current account deficit but has an ambiguous effect on a country with a surplus. From dependence on the spillover effect, non-cooperative choices by two countries on the composition of government expenditure can be shown to differ from cooperative ones}, pages = {49--63}, title = {Spillover Effect, Current Account, and the Composition of Government Expenditure}, volume = {54}, year = {2006} }