The political economy of growth, inequality, the size and composition of government spending
Archivos
Fecha
2014
Título de la revista
ISSN de la revista
Título del volumen
Editor
Pontificia Universidad Católica del Perú. Departamento de Economía
DOI
Resumen
Este trabajo desarrolla un modelo económico-político de equilibrio general dinámico para el tamaño y la composición óptima del gasto público. Una solución analítica es derivada de la votación por mayoría para tres categorías de gasto público: bienes de consumo público y transferencias (valorados por las familias), como también servicios públicos productivos (complementando al capital privado en una tecnología de crecimiento endógeno). La desigualdad se refleja en una distribución discreta de agentes que viven innatamente y dieren por sus tenencias de capital inicial. En contraste a la literatura previa que deriva relaciones monótonas (típicamente negativas) entre desigualdad y crecimiento en ambientes con votación unidimensional, este trabajo establece las condiciones, en un entorno de votación multidimensional, en virtud del cual una relación no monótona, forma de U invertida, entre desigualdad y crecimiento es obtenida. Este resultado más general que la desigualdad y crecimiento Podrían estar relacionados negativa o positivamente puede ser consistente con los Resultados ambiguos e inconclusos documentados en la literatura empírica del nexo desigualdad-crecimiento. Este trabajo también muestra que el equilibrio de economía Política obtenida bajo votación multidimensional para el periodo inicial es consistente en el tiempo.
This paper develops a dynamic general-equilibrium political-economy model for the optimal size and composition of public spending. An analytical solution is derived from majority voting for three government spending categories: public consumption goods and transfers (valued by households), as well as productive government services (complementing private capital in an endogenous-growth technology). Inequality is reflected by a discrete distribution of infinitely-lived agents that differ by their initial capital holdings. In contrast to the previous literature that derives monotonic (typically negative) relations between inequality and growth in one-dimensional voting environments, this paper establishes conditions, in an environment of multi-dimensional voting, under which a non-monotonic, inverted U-shape relation between inequality and growth is obtained. This more general result —that inequality and growth could be negatively or positively related— could be consistent with the ambiguous or inconclusive results documented in the empirical literature on the inequality-growth nexus. The paper also shows that the political-economy equilibrium obtained under multi-dimensional voting for the initial period is time-consistent.
This paper develops a dynamic general-equilibrium political-economy model for the optimal size and composition of public spending. An analytical solution is derived from majority voting for three government spending categories: public consumption goods and transfers (valued by households), as well as productive government services (complementing private capital in an endogenous-growth technology). Inequality is reflected by a discrete distribution of infinitely-lived agents that differ by their initial capital holdings. In contrast to the previous literature that derives monotonic (typically negative) relations between inequality and growth in one-dimensional voting environments, this paper establishes conditions, in an environment of multi-dimensional voting, under which a non-monotonic, inverted U-shape relation between inequality and growth is obtained. This more general result —that inequality and growth could be negatively or positively related— could be consistent with the ambiguous or inconclusive results documented in the empirical literature on the inequality-growth nexus. The paper also shows that the political-economy equilibrium obtained under multi-dimensional voting for the initial period is time-consistent.
Descripción
Palabras clave
Gastos públicos, Finanzas públicas, Presupuesto
Citación
Colecciones
item.page.endorsement
item.page.review
item.page.supplemented
item.page.referenced
Licencia Creative Commons
Excepto se indique lo contrario, la licencia de este artículo se describe como info:eu-repo/semantics/openAccess