Abstract

VELAZQUEZ ORIHUELA, Daniel. El efecto del gasto público en el ciclo económico: una visión alternativa. Estud. Econ. (México, D.F.) [online]. 2015, vol.30, n.1, pp.93-140. ISSN 0186-7202.

In this paper, we built a general equilibrium model in order to analyze how the prices and allocations are changed by the government consumption which is financed with debt. It is shown the period in with the government spending the employment and output increase. However, in subsequent periods will put the economy on a path of growth (decline), if government spending generated more (less) resources than required to finance.

Keywords : effective demand; economic fluctuations; unemployment; fiscal policy; keynesian multiplier.