Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217360 
Year of Publication: 
2019
Citation: 
[Journal:] Investigación Económica [ISSN:] 2594-2360 [Volume:] 78 [Issue:] 309 [Publisher:] Universidad Nacional Autónoma de México (UNAM), Faculdad de Economía [Place:] Ciudad de México [Year:] 2019 [Pages:] 107-132
Publisher: 
Universidad Nacional Autónoma de México (UNAM), Faculdad de Economía, Ciudad de México
Abstract: 
In this paper, we attempt to support the argument regarding the endogeneity of productivity to effective demand. Unlike most of the works on the topic, we focus on the role that both public investment and public consumption have on productivity. We suggest, at the theoretical level, that public investment has unambiguously positive effects on productivity, whereas the effect of public consumption is ambiguous, being not necessarily large or positive. Our econometric results, using data of selected Latin American economies, support the previous argument. The policy recommendation that follows from these results is that an expansionary fiscal policy based on public investment can indeed enhance the productivity evolution and consequently economic growth and development.
Subjects: 
Productivity
aggregate demand
public spending
Latin America
JEL: 
O11
O23
O47
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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