The Composition of Public Expenditure and Growth : A Small-Scale Intertemporal Model for Low-Income Countries
This paper presents a small-scale intertemporal model of endogenous growth that accounts for the composition of public expenditure and externalities associated with public capital. Government spending is disaggregated into various components, inclu...
Main Authors: | , |
---|---|
Format: | Policy Research Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2012
|
Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2007/12/8841616/composition-public-expenditure-growth-small-scale-intertemporal-model-low-income-countries http://hdl.handle.net/10986/7595 |
Summary: | This paper presents a small-scale
intertemporal model of endogenous growth that accounts for
the composition of public expenditure and externalities
associated with public capital. Government spending is
disaggregated into various components, including
maintenance, security, and investment in education, health,
and core infrastructure. After studying its long-run
properties, the model is calibrated for Haiti, using
country-specific information as well as parameter estimates
from the literature. A variety of policy experiments are
then reported, including a reallocation of spending aimed at
creating fiscal space to promote public investment; an
improvement in fiscal management that leads to a reduction
in tax collection costs; higher spending on security; and a
composite fiscal package. |
---|