Abstract

ALVIS, Camilo  and  CASTRILLON, Cristian. TAMAÑO ÓPTIMO DEL GASTO PÚBLICO COLOMBIANO: UNA APROXIMACIÓN DESDE LA TEORÍA DEL CRECIMIENTO ENDÓGENO. Cuad. Econ. [online]. 2013, vol.32, n.60, pp.561-596. ISSN 0121-4772.

The purpose of this paper is to provide an estimation of Barro's (1990) model on public expenditure and economic growth. The estimation was performed by the generalized method of moments (GMM) for Colombian's economy in the period 1950-2010. The results suggest that the optimum size of public spending exceeded starting the nineties. Furthermore, we found that the size of public spending that maximizes the growth rate of GDP per capita depends inversely on the relative risk aversion's degree and the Intertemporal Elasticity of Substitution is very low in the analyzed period.

Keywords : Economic growth; government expenditure; fiscal policy; econometric and statistical; methods and methodology; programming models; econometric modeling.

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