Utilizing a two-sector, general equilibrium model with variable returns-to-scale technology, the authors examine the effects of fiscal spending on the goods-price ratio, private income, government income, and national income in a neoclassical economy. The fiscal policy is contractionary when the...

This paper analyzes the implications of three types of technical progress on outputs in a variable returns-to-scale framework. It is shown that Hicks-ne utral technical improvement is ultra-biased in production regardless of the direction and severity of the returns to scale. The output eff ect...