Investigating factors affecting the optimal growth of government spending in the economy Using the optimal control method

Determining the size of the government and its effect on the economy is one of the important issues in the field of public sector economics. This research seeks to determine the factors affecting the optimal growth rate of government expenditures. The increase in government spending has an effect on economic variables and can lead to an increase in the production and supply of public goods and services and affects the well-being of households as well as the desirability of households. The purpose of this research is to investigate the factors affecting the optimal growth of government spending in Iran's economy. The information used is for the period 1360 to 1397. In this study, the dynamic optimal control approach has been used to investigate the factors affecting the growth of government expenditures. The results of the study show that the time preference rate, the coefficient of technical progress, the elasticity of production in relation to the investment of the private and public sectors, the consumption ratio of the sector Private to public, capital stock has had a negative and inverse effect on the optimal growth of government spending in the economy. On the other hand, the ratio of public sector investment to private sector, the elasticity of substitution between time and capital depreciation rate have had a positive effect on the optimal growth rate of government spending in Iran's economy. Also, the sensitivity of the growth rate of government expenditures was estimated for different values ​​of the mentioned variables. The calculation results show that depending on the parameters, the ratio of government expenditures to the previous period varies between 0.91 and 1.024 percent.