The effect of government spending on the economic cycle: An alternative vision

Authors

  • Daniel Velázquez Orihuela Universidad Autónoma del Estado de Hidalgo

DOI:

https://doi.org/10.24201/ee.v30i1.24

Keywords:

effective demand, economic fluctuations, unemployment, fiscal policy, keynesian multiplier

Abstract

In this paper, we built a general equilibrium model in order to analyze how the prices and allocations are changed by the government consumption which is financed with debt. It is shown the period in with the government spending the employment and output increase. However, in subsequent periods will put the economy on a path of growth (decline), if government spending generated more (less) resources than required to finance.

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Published

2015-01-01

How to Cite

Velázquez Orihuela, D. (2015). The effect of government spending on the economic cycle: An alternative vision. Estudios Económicos De El Colegio De México, 30(1), 93–140. https://doi.org/10.24201/ee.v30i1.24

Issue

59-vol. 30 no. 1, january-june, 2015

Section

Articles