Abstract

RIVAS-ACEVES, Salvador  and  VENEGAS-MARTINEZ, Francisco. The Government as a Promoter of Technological Change: An Endogenous Growth Model with Labor, Money and Debt. Econ. mex. Nueva época [online]. 2010, vol.19, n.1, pp.31-90. ISSN 1665-2045.

In the framework of a monetary economy with labor and debt (public and private), the effects of government as a promoting agent to boost up technological change are studied. Through a model of endogenous growth, the growth rates of all sectors are characterized in the perfect foresight equilibrium. Moreover, the impact on economic welfare of taxes and government spending to impulse technological change is assessed. Finally, in a simulation exercise, the initial optimal level of government spending (which maximizes welfare), in which the govern ment should incur to adequately address technological change, is examined.

Keywords : endogenous growth; government spending; technological change; money; debt.

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