Knowledge Spillover, Relative Wealth Seeking Motive and Government Expenditure Financing in Growth Analysis

摘要

This paper introduces the motive of the relative wealth seeking, which characterizes the entrepreneurship, into a knowledge-spillover-type endogenous growth model with a cash-in-advance constraint on consumption purchases and investment goods. I attempt to reexamine the growth effect of the wasteful government expenditure expansion, financed by alternative distortionary tax schemes, including seigniorage, consumption tax and income tax.