The thesis presents a useful and effective blend of insights about macroeconomic business fluctuations and the effects of government expenditure in economic growth in Korea.
In Chapter I, I show that the joint behavior of key Korean macroeconomic variables is consistent with traditional Keynesian interpretation of macroeconomic business fluctuations by using standard VAR analysis and structural VAR analysis. Both analyses consistently confirmed that aggregate demand shocks move output and prices in the same direction, whereas aggregate supply shocks move output and prices in the opposite direction in the short run, and that aggregate demand shocks are reflected mostly in prices in the long run, while aggregate supply shocks are likely to have long run effects on output.
In Chapter II, I analyze the long run effects of different types of government spending on economic growth in Korean economy by using Transfer Function Analysis and Impulse Response Analysis. Both analyses indicated that the most efficient way to enhance the economic growth in Korea is by increasing expenditure on health, education, electricity, gas and water without ignoring expenditures on roads, social security and welfare, transportation and communication. / Graduation date: 1997
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/34280 |
| Date | 04 October 1996 |
| Creators | Yoon, Tae-Yong |
| Contributors | Tremblay, Victor |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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