Chapter 1 Introduction

Chapter 2 Overview of Government Spending

Chapter 3 Measuring the Effects of Government Spending

Chapter 4 Effects of Government Spending on Employment and Wages

Chapter 5 Overview of Existing Studies and Models on Government Spending

Chapter 6 Effect Model of Government Spending

Chapter 7 Conclusion

Government spending affects many variables in a variety of ways. This study seeks to comprehensively analyze its impact on several variables. The empirical analysis of this study uses the input-output table panel data. Then, a theoretical model is constructed based on the empirical analysis results. Through this model, this study will theoretically examine the paths and mechanisms through which government spending affects each variable, and analyze how its effect can vary depending on the way each variable responds to government spending. From 2010 to 2019, the share of government spending in output averaged 19.9%. Government spending is largely divided into government consumption expenditures and government investment.  The share of government consumption was 15.2%, and that of government investment was 4.7%. Government consumption takes place in the areas of public administration and defense, medical and health care, education services, social welfare services, and social insurance services, while government investment is done mainly in the fields of transportation facility construction, non-residential buildings, civil construction, and R&D.

Government consumption can be directly related to private consumption. Government investment mainly involves building infrastructure and investing in R&D, so it can be expected to have a direct impact on private investment. Government consumption and government investment have different impacts on outputs and different ways of influencing the behavior of economic agents. Given these facts, this study examines the effects of government consumption and government investment separately. (For the full text of the English summary, please download the “Download 2 English_Abstract”.)