Government investment spending

Government Spending and Growth

Government Spending: An Economic Boost?

The severe global economic downturn and the large stimulus programs that governments in many countries adopted in response have generated a resurgence in research on the effects of fiscal policy. One key lesson emerging from this research is that there is no single fiscal multiplier that sums up the economic impact of fiscal policy. Rather, the impact varies widely depending on the specific fis...

Macro-Economic Relativity: Government Spending, Private Investment and Unemployment in the USA

A new approach to time series modelling is used to explore how government spending and private capital investment may have influenced the unemployment rate in the USA between 1948 and 1988. The resulting model suggests strongly that the investigation of dynamic relationships between purely relative measures of the major macro-economic variables can help in understanding changes in economic beha...

How Can Government Spending Stimulate Consumption?

Recent empirical work finds that government spending shocks can cause aggregate consumption to increase. This paper builds on the framework of imperfect information in Lucas (1972) and Lorenzoni (2009) to show how government spending can stimulate consumption. Owners of firms targeted by an increase in government spending perceive an increase in their permanent income relative to their future t...

Government health care spending and child mortality.

BACKGROUND Government health care spending (GHS) is of increasing importance to child health. Our study determined the relationship between reductions in GHS and child mortality rates in high- and low-income countries. METHODS The authors used comparative country-level data for 176 countries covering the years 1981 to 2010, obtained from the World Bank and the Institute for Health Metrics and...