Journal ArticleDOI
Is public expenditure productive
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In this paper, the relationship between aggregate productivity and stock and flow government-spending variables is investigated and the empirical results indicate that the non-military public capital stock is dramatically more important in determining productivity than is either the flow of nonmilitary or military spending, and that military capital bears little relation to productivity.About:
This article is published in Journal of Monetary Economics.The article was published on 1989-03-01. It has received 5163 citations till now. The article focuses on the topics: Public capital & Total factor productivity.read more
Citations
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Africa's Growth Tragedy: Policies and Ethnic Divisions
William Easterly,Ross Levine +1 more
TL;DR: This article showed that ethnic diversity helps explain cross-country differences in public policies and other economic indicators in Sub-Saharan Africa, and that high ethnic fragmentation explains a significant part of most of these characteristics.
Posted Content
Government spending in a simple model of endogenous growth
TL;DR: This article extended these models to include tax- financed government services that affect production or utility, and showed that growth and saving rates fall with an increase in utility-type expenditures; the two rates rise initially with productive government expenditures but subsequently decline.
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The Search for R&D Spillovers
TL;DR: This article reviewed the empirical evidence for R&D spillovers and concluded that they are a major source of endogenous growth in various recent "New Growth Theory" models, and that they should be investigated further.
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Fiscal Policy and Economic Growth: An Empirical Investigation
William Easterly,Sergio Rebelo +1 more
TL;DR: In this paper, the empirical regularities relating fiscal policy variables, the level of development and the rate of growth are described, and they employ historical data, recent cross-section data, and newly constructed public investment series.
Journal ArticleDOI
The composition of public expenditure and economic growth
TL;DR: In this paper, the authors derive conditions under which a change in the composition of expenditure leads to a higher steady-state growth rate of the economy and show that an increase in the share of current expenditure has positive and statistically significant growth effects.
References
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Journal ArticleDOI
Spurious regressions in econometrics
Clive W. J. Granger,P. Newbold +1 more
TL;DR: In this paper, it is pointed out that it is very common to see reported in applied econometric literature time series regression equations with an apparently high degree of fit, as measured by the coefficient of multiple correlation R2 or the corrected coefficient R2, but with an extremely low value for the Durbin-Watson statistic.
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Trends and random walks in macroeconmic time series: Some evidence and implications
TL;DR: In this paper, the authors investigate whether macroeconomic time series are better characterized as stationary fluctuations around a deterministic trend or as non-stationary processes that have no tendency to return to the deterministic path, and conclude that macroeconomic models that focus on monetary disturbances as a source of purely transitory fluctuations may not be successful in explaining a large fraction of output variation.
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Issues in assessing the contribution of research and development to productivity growth
TL;DR: In this article, the authors outline the production function approach to the estimation of the returns to R&D and then discuss in turn two very difficult problems: the measurement of output in R&DI intensive industries and the definition and measurement of the stock of R&DC 'capital'.
Book
Public Investment, the Rate of Return, and Optimal Fiscal Policy
Kenneth J. Arrow,Mordecai Kurz +1 more
TL;DR: In this paper, a theory of "controllability" is developed and injected into public economics and growth models to analyze optimal public expenditures in the context of modern growth theory, and a model of optimal growth with public capital is proposed.
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Does public capital crowd out private capital
TL;DR: In this article, the authors focus on the question: does higher public capital accumulation "crowd out" private investment, i.e., induce an ex ante crowding out of private investment.