Title: Research on congestible government production and welfare expenditure in stochastic endogenous growth model
Authors: Bo Yang; Xueguang Chen; Mehala Zhuran
Addresses: Department of Control Science and Technology, Huazhong University of Science and Technology, Wuhan City, Hubei Province, 430073, China; Graduate Schools, Naval University of Engineering, Wuhan City, Hubei Province, 430043, China ' Department of Control Science and Technology, Huazhong University of Science and Technology, Wuhan City, Hubei Province, 430073, China ' Department of Electronic and Communication Engineering, Mansoura University, Ad Daqahliyah, Egypt
Abstract: Based on the endogenous growth model, a continuous-time stochastic endogenous growth model with congestible government production and welfare expenditure is proposed. The impact of model parameters on the equilibrium economic growth and welfare is discussed and some optimal policy parameters are obtained. Furthermore, production effect of congestible government expenditure is investigated from two cases whether congestion has production utility or not. Finally, macroeconomic effects of government expenditure and its volatility on economic growth are analysed and demonstrated.
Keywords: stochastic modelling; endogenous growth models; congestion; stochastic fluctuation; economic growth; government production; welfare expenditure.
International Journal of Computer Applications in Technology, 2014 Vol.50 No.1/2, pp.148 - 157
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 25 Jul 2014 *