Private Sector Consumption and Government Consumption and Debt in Advanced Economies : An Empirical Study / Sanchita Mukherjee, Rina Bhattacharya.

Format:

Book

Government document

Author/Creator:

Mukherjee, Sanchita.

Contributor:

Bhattacharya, Rina.

Series:

IMF Working Papers; Working Paper ; No. 2010/264

IMF Working Papers

Language:

English

Subjects (All):

Consumption (Economics).

Debts, Public.

Physical Description:

1 online resource (37 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2010.

Language Note:

English

Summary:

This paper explores the hypothesis that the propensity to consume out of income varies in a non-linear fashion with fiscal variables, and in particular with government debt per capita. Using data from eighteen OECD countries the paper examines whether there is any empirical evidence to support the hypothesis that households move from non-Ricardian to Ricardian behavior as government debt reaches high levels and as uncertainty about future taxes increases. Our results provide support for this hypothesis, and also suggest that private and government consumption are substitutes in the household utility function.

Contents:

Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Literature Review; III. The Theoretical Model; IV. The Empirical Results; Estimated MPCs and Government Debt-to-Household Income Ratios; 1. Kalman Filter Estimates; 2. Panel Data Estimation Results; V. Conclusions; The Modified Sutherland Model; References; Footnotes

Notes:

"November 2010."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613875266

9781462380954

1462380956

9781455211487

1455211486

9781283562812

1283562812

9781455211494

1455211494

OCLC:

867927323