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Economic Growth,Regional Income Disparity and Public Spending

YAO Lian-fang(School of Economics and Management,Wuhan University,Wuhan 430071,China)  
Constructing a two-region endogenous growth model containing public infrastructures,which brings government spending policies into a uniform frame and considers the integrative affect of different types of public spending measures on regional development.Contrary to transfers and traditional regional policies,it is shown that government spending policies that reduce the cost of innovation can attain the objectives of higher growth and regional equality.
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