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Public consumer goods, output-generated variable returns, and labor supply

Anwar, Sajid (1997). Public consumer goods, output-generated variable returns, and labor supply. Journal of Economics,65(2):201-215.

Document type: Journal Article
Citation counts: Scopus Citation Count Cited 1 times in Scopus Article | Citations

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Title Public consumer goods, output-generated variable returns, and labor supply
Author Anwar, Sajid
Journal Name Journal of Economics
Publication Date 1997
Volume Number 65
Issue Number 2
ISSN 0931-8658   (check CDU catalogue open catalogue search in new window)
Scopus ID 2-s2.0-3042911832
Start Page 201
End Page 215
Total Pages 15
Place of Publication Austria, University of Bonn
Publisher Springer Publishing Company
HERDC Category C1 - Journal Article (DEST)
Abstract Abstract This paper develops a simple general-equilibrium model of a closed economy. The economy under consideration produces two final goods, one private and one public, which are both produced with labor and an intermediate good under constant returns to scale. The intermediate good is produced by labor alone, and its production is subject to output-generated variable returns to scale. The public good can be interpreted as government spending on environmental quality, police protection, cultural activities, and publicly funded health care. The model is used to examine the impact of an exogenous change in labor supply on the size of the government, relative prices, and welfare. Within the context of the present study, an increase in labor supply can be attributed to either exogenous immigration or population growth. The model is also used to examine the relationship between the size of the country and the pattern of trade.
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Created: Fri, 12 Sep 2008, 08:35:25 CST by Administrator