Public Expenditure, Inflation, and Growth: A Macro-econometric Analysis for IndiaThe trade-off between inflation and growth is a major issue in economics, and in developing countries the problem arises mainly as a result of the dual roles played by public expenditure--which generates income and employment--and deficit financing--which triggers inflation. In this empirical analysis of the issues involved, the author uses a disaggregated macro-economic model specially developed for the mixed economy of India to discuss government budgetary constraints, resource mobilization, money supply and price levels, investment and growth, and price-wage spirals in the Indian economy. |
Contents
INTRODUCTION | 1 |
Monetarist vs Structuralist View of Inflation | 11 |
SOME FEATURES OF INDIAN ECONOMIC DEVELOPMENT | 18 |
Copyright | |
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aggregate demand aggregate supply agricultural output agricultural price index agricultural sector analysis assets average bank credit BBRC borrowings budget constraint capital stock coefficient commercial banks consumer expenditure consumption corporate tax deficit financing demand deposits determined Dummy Variable dynamic economy effect elasticity employment endogenous endogenous variables equation estimated exogenous exports factors fixed investment foreign exchange stock function government budget gross domestic product growth Implicit Price Deflator import increase India indirect taxes inflation interest rate inventory investment Keynesian labour lagged long-term manufacturing sector ment monetarist money supply multiplier Nominal non-agricultural income non-monetary payments period price level private sector production public expenditure public investment public sector ratio raw materials real output Real Private Investment relative price respect revenue and expenditure salary and wage sample mean levels services sector significant simulation structural subsidy tax rates tax revenue transactions wage bill wage rate XGDP XIPF