long-run returns since politicians concerned about electoral prospects would favor expenditures providing immediate … benefits to their voters. An alternative budgetary approach is to separate capital from current revenues and expenditures and … relax fiscal constraints by allowing governments to finance capital expenditures with debt, as suggested by the golden rule …

-run impact of government expenditure composition and taxation. They analyze the use of the primary balance as a policy tool … interaction between public expenditure composition and taxation on growth. Similar results are obtained: large elasticities of …