1 option
The Output, Employment, and Interest Rate Effects of Government Consumption / S. Rao Aiyagari, Lawrence J. Christiano, Martin Eichenbaum.
- Format:
- Book
- Author/Creator:
- Aiyagari, S. Rao.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w3330.
- NBER working paper series no. w3330
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1990.
- Summary:
- This paper investigates the impact on aggregate variables of changes in government consumption in the context of a stochastic, neoclassical growth model. We show, theoretically, that the impact on output and employment of a persistent change in government consumption exceeds that of a temporary change. We also show that, in principle, there can be an analog to the Keynesian multiplier in the neoclassical growth model. Finally, in an empirically plausible version of the model, we show that the interest rate impact of a persistent government consumption shock exceeds that of a temporary one. Our results provide counter examples to existing claims in the literature.
- Notes:
- Print version record
- April 1990.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.