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https://www.researchgate.net/publication/228376470_The_Distributional_Consequences_of_Government_Spending

Very interesting little model. Government infrastructure spending increases wages in the short run by increasing the capital supply, but lowest wages and raises capital income in the long run by boosting the return on private capital. Is this result valid?

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  • $\begingroup$ Can you ask a more precise question? Answers to "what do you think" will be largely driven by personal opinions - and we prefer questions with objective answers. $\endgroup$ – FooBar Feb 17 '16 at 13:08

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