Economics, Econometrics and Finance
4 years ago

Government spending boosts welfare in small economies with fixed exchange rates.

SSRN Electronic Journal
Can Fiscal Policy Improve Welfare in a Small Dependent Economy with Feedback Effects
Luís F. Costa

Paper Summary

Related papers

Economics, Econometrics and Finance
3 years ago

Optimizing public investment for maximum economic welfare and growth

Infrastructure Impact
Fiscal Policy
Macroeconomic Analysis
1 view
Economics, Econometrics and Finance
4 years ago

Fiscal policy boosts economy by increasing competition and profits.

Monetary Models
Infrastructure Impact
Macroeconomic Trends
1 view
Economics, Econometrics and Finance
4 years ago

Optimal fiscal policy boosts economy with efficient product variety management.

Infrastructure Impact
Economic Growth
Monetary Models

The article explores how government spending in a small economy can impact welfare. The researchers use a model with two sectors and fixed exchange rates to analyze the effects of government purchases on the economy. They find that under certain conditions, government spending can lead to an improvement in welfare for the economy.