
KCI등재
학술저널
Is Fiscal Spending Expansionary in a Dual Economy?
Is Fiscal Spending Expansionary in a Dual Economy?
- Chi Chur Chao Eden S. H. Yu
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제6권 제2호
- 등재여부 : KCI등재
- 1991.09
- 20 - 33 (14 pages)
A two-region, three-sector, general equilibrium model is utilized to analyze effects of fiscal spending upon a dual economy. We examine the effects of fiscal spending on services prices, the urban unemployment ratio, and national income. The main result of this paper is that fiscal spending may be effective in mitigating unemployment, as Keynesian economists have believe. More importantly, the fiscal policy may even be contractionary under certain plausible conditions.