Understanding the effects of government spending on consumption
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- dc.contributor.author Galí, Jordi, 1961-ca
- dc.contributor.author López-Salido, J. Davidca
- dc.contributor.author Vallés, Javierca
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2017-07-26T10:51:01Z
- dc.date.available 2017-07-26T10:51:01Z
- dc.date.issued 2002-09-01
- dc.date.modified 2017-07-23T02:10:05Z
- dc.description.abstract Recent evidence suggests that consumption rises in response to an increase in government spending. That finding cannot be easily reconciled with existing optimizing business cycle models. We extend the standard new Keynesian model to allow for the presence of rule-of-thumb consumers. We show how the interaction of the latter with sticky prices and deficit financing can account for the existing evidence on the effects of government spending.
- dc.format.mimetype application/pdfca
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=911
- dc.identifier.uri http://hdl.handle.net/10230/1002
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 911
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword rule-of-thumb consumers
- dc.subject.keyword non-ricardian households
- dc.subject.keyword fiscal multiplier
- dc.subject.keyword government spending
- dc.subject.keyword taylor rules
- dc.subject.keyword Macroeconomics and International Economics
- dc.title Understanding the effects of government spending on consumptionca
- dc.type info:eu-repo/semantics/workingPaper