ESSAYS ON FISCAL POLICY, PUBLIC INFRASTRUCTURE, AND PUBLIC R&D AND HETEROGENEOUS LABOR
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Abstract This dissertation includes three essays on the dynamic effects of fiscal policy, public infrastructure, and public R&D and heterogeneous labor. In the first essay, we develop and estimate a DSGE model in which congested public infrastructure and public R&D are the crucial elements of a neoclassical production function in order to investigate the dynamic effects of increasing in government investment in R&D and government investment in infrastructure. For the second essay, we estimate a small scale DSGE model for the Thai economy. The endogenous growth model is developed to incorporate congestion due to production inputs and the population density. The estimates suggest that all factors have congested public infrastructure, and that density may be the dominant influence. The third essay analyzes the effects of public R&D on differentiated labor for the US economy compared to the Thailand economy, including male skilled labor, female skilled labor, male unskilled labor, and female unskilled labor. Two sectors of R&D and final goods productions are analyzed in which the final goods firms produce homogenous final output to the economy, and intermediate goods firms invest in R&D knowledge and utilize public R&D to produce blueprints and then produce variety of capital. We find that for the R&D sector, the elasticities of substitution between the two inputs of the two nested levels for the Thai economy and for the United States are the same in terms of complementarity and substituion. For the final goods sector, all the inputs are substitutes for the Thai economy but the for the United States, unskilled female and variety capital are complements.