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Effects of public expenditures on economic development : a model of regional equilibrium
[Les effets des dépenses publiques sur la croissance : un modèle d'équilibre régional]

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  • Sylvie Charlot

    (ENESAD - Etablissement National d'Enseignement Supérieur Agronomique de Dijon)

Abstract

his working paper considers the links between public expenditures and regional growth, and public expenditures and geographical distribution of activities. The first part gives an outline of the regional development analyses. We focus on theoritical as well as applied studies based on endogeneous growth models and on their application on regional study. Regional models of location are also considered. The second part presents the elaboration of a regional equilibrium model based on Krugman work, adding public expenditures. The public capital is produced by a tax deducted from the national product. It is distributed among two regions by an exogeneous way. We suppose that the public capital affects the productivity of local compagnies. The introduction of a public sector modifies the equilibrium conditions. Own first simulations show that government can affect the income distribution, the utility and the geographical distribution of workers by an adapted taxe rate and an adapted public investissment geographical distribution.

Suggested Citation

  • Sylvie Charlot, 1996. "Effects of public expenditures on economic development : a model of regional equilibrium [Les effets des dépenses publiques sur la croissance : un modèle d'équilibre régional]," Working Papers hal-01526935, HAL.
    • Handle: RePEc:hal:wpaper:hal-01526935
    Note: View the original document on HAL open archive server: https://hal.science/hal-01526935
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    References listed on IDEAS

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