We present a theory of endogenous fiscal policy and growth. Fiscal policy — debt, income tax, spending on local public goods and public investment — is determined through legislative bargaining. Economic growth depends directly on public investment, private investment in human capital and, via learning-by-doing, labor supply. The model predicts that the economy converges to a balanced growth path in which consumption, private investment, public investment, public goods provision, public debt and productivity grow at the same constant rate. The transition to the balanced growth path is characterized by what we call the shrinking government effect: public debt grows faster than GDP, provisions of public goods and infrastructure grow slower than GDP and the tax rate declines. We use the model to study the impact of austerity programs which impose a ceiling on the amount of public debt a country can issue.
This paper discusses how public research organizations consume funding for research, applying a new approach based on economic metabolism of research labs, in a broad analogy with biology. This approach is applied to a case study in Europe represented by one of the biggest European public research organizations, the National Research council of Italy. Results suggest that funding for research (state subsidy and public contracts) of this public research organization is mainly consumed for the cost of personnel. In addition, the analysis shows a disproportionate growth of the cost of personnel in public research labs in comparison with total revenue from government. In the presence of shrinking public research lab budgets, this organizational behavior generates inefficiencies and stress. R&D management and public policy implications are suggested for improving economic performance of public research organizations in turbulent markets.
Blunt trauma abdomen rarely leads to gastrointestinal injury in children and isolated gastric rupture is even rarer presentation. We are reporting a case of isolated gastric rupture after fall from height in a three year old male child.