Congested government expenditure in a stochastic endogenous growth model with production and consumption features

摘要

In this paper, we discuss the continuous-time stochastic endogenous growth model with congestion. And we consider tow cases: one is that congestion has production utility, the second is that congestion has welfare utility. With this model, we demonstrate and analyze the macroeconomic effects of government expenditure and its volatility on economic growth and individual propensity to consume.