Bayraktar, NihalMoreira, Emmanuel Pinto2012-06-082012-06-082007-12https://hdl.handle.net/10986/7595This paper presents a small-scale intertemporal model of endogenous growth that accounts for the composition of public expenditure and externalities associated with public capital. Government spending is disaggregated into various components, including maintenance, security, and investment in education, health, and core infrastructure. After studying its long-run properties, the model is calibrated for Haiti, using country-specific information as well as parameter estimates from the literature. A variety of policy experiments are then reported, including a reallocation of spending aimed at creating fiscal space to promote public investment; an improvement in fiscal management that leads to a reduction in tax collection costs; higher spending on security; and a composite fiscal package.CC BY 3.0 IGOADMINISTRATIVE COSTSADVERSE EFFECTSBANK POLICYBASE YEARBASELINE SCENARIOBENCHMARKINGBORROWINGBUDGET BALANCEBUDGET CONSTRAINTBUDGET CONSTRAINTSBUDGET DEFICITBUDGET SURPLUSBUSINESS CYCLECALCULATIONSCAPITAL ACCUMULATIONCAPITAL EXPENDITURECAPITAL FORMATIONCAPITAL SPENDINGCAPITAL STOCKCAPITAL STOCKSCASH BASISCIVIL LIBERTIESCOMMODITIESCOMMODITYCOMPOSITION OF GOVERNMENT SPENDINGCOMPOSITION OF PUBLIC SPENDINGCONSUMPTION SMOOTHINGCONSUMPTION TAXESCONTRIBUTIONCURRENT ACCOUNTDEBTDEBT SUSTAINABILITYDEFICITSDEPRECIATIONDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISCOUNT RATEDISCOUNTED VALUEDOMESTIC DEBTDOMESTIC MARKETECONOMIC GROWTHECONOMIC POLICYECONOMIC RESEARCHECONOMIC SECURITYEDUCATED INDIVIDUALSEDUCATION EXPENDITURESEDUCATION SERVICESEDUCATION SYSTEMEDUCATIONAL SYSTEMSEFFICIENCY OF RESOURCE ALLOCATIONELASTICITIESELASTICITYELASTICITY OF SUBSTITUTIONELECTRICITYEQUATIONSEQUILIBRIUMEXCESS DEMANDEXPENDITURESEXPROPRIATIONEXPROPRIATION RISKSEXTERNAL DEBTEXTERNAL FINANCINGEXTERNALITIESFISCAL ACCOUNTSFISCAL ADJUSTMENTFISCAL BALANCEFISCAL MANAGEMENTFISCAL POLICYFISCAL REFORMSFIXED CAPITALGDPGDP PER CAPITAGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT EXPENDITUREGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SPENDINGGROWTH MODELGROWTH RATEHEALTH CAREHEALTH SERVICESHOUSEHOLD SPENDINGHUMAN CAPITALINCOME DISTRIBUTIONINCOME TAXINCOME TAXESINCREASING RETURNSINFRASTRUCTURE SERVICESINTEREST EXPENDITUREINTEREST PAYMENTSINTEREST RATEINTERNATIONAL BANKINVENTORYINVESTMENT DECISIONSINVESTMENT SPENDINGLABOR FORCELIQUIDITYLIQUIDITY CONSTRAINTSLITERACYLIVING STANDARDSLOW-INCOMEMACROECONOMIC FRAMEWORKMACROECONOMICSMARGINAL PRODUCTMARGINAL PRODUCTIVITYMARGINAL UTILITYMARGINAL UTILITY OF CONSUMPTIONMARKET PRICESMAXIMUM LIKELIHOOD ESTIMATIONMISMANAGEMENTMONETARY FUNDNATIONAL ACCOUNTSNET REVENUEOPEN ECONOMYOPTIMAL TAXATIONOUTPUT PER CAPITAOUTPUT RATIOPERSONAL INCOMEPERSONAL INCOME TAXPHYSICAL ASSETSPOLITICAL ECONOMYPOLITICAL STABILITYPOVERTY RATEPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGIESPRIVATE CAPITALPRIVATE CAPITAL STOCKPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRIVATE SAVINGPRIVATE SAVINGSPRIVATE SECTORPRIVATE SPENDINGPRODUCTION FUNCTIONSPRODUCTION INPUTSPRODUCTIVE CAPITALPRODUCTIVITYPROPERTY RIGHTSPUBLICPUBLIC ADMINISTRATIONPUBLIC CAPITALPUBLIC DEBTPUBLIC DEFICITSPUBLIC DISCLOSUREPUBLIC EDUCATIONPUBLIC EMPLOYEESPUBLIC EMPLOYMENTPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEWSPUBLIC GOODSPUBLIC HEALTHPUBLIC HEALTH SERVICESPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENT IN INFRASTRUCTUREPUBLIC INVESTMENT SPENDINGPUBLIC PRODUCTIONPUBLIC RESOURCESPUBLIC SCHOOLSPUBLIC SECTORPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR WAGESPUBLIC SERVICESPUBLIC SPENDINGRATE OF GROWTHRATIO OF PUBLIC SPENDINGREAL GDPREMITTANCESRESOURCE ALLOCATIONRETURNRETURNSRISK OF EXPROPRIATIONRISK OF REPUDIATIONROADSRULE OF LAWSALARIESSAVING BEHAVIORSAVINGSSENIORSIDE EFFECTSSTATE UNIVERSITYSTOCKSTAX COLLECTIONTAX INCOMETAX RATETAX RATESTAX REFORMTAX REVENUESTAX SYSTEMSTAXATIONTELECOMMUNICATIONSTELEPHONE LINESTERRORISMTOTAL DEBTTOTAL EXPENDITURETOTAL PUBLIC EXPENDITURETOTAL REVENUETOTAL SPENDINGUNCERTAINTYUNEMPLOYMENTUNSKILLED WORKERSUTILITY FUNCTIONVALUABLEWAGEWAGE INCOMEWAGESWEALTHWEALTH EFFECTWORTHWorld Bank10.1596/1813-9450-4430