The Household Effects of Government Spending
Author : Francesco Giavazzi
Publisher :
Page : 40 pages
File Size : 36,92 MB
Release : 2012
Category :
ISBN :
Fiscal Policy after the Financial Crisis
Author : Alberto Alesina
Publisher : University of Chicago Press
Page : 596 pages
File Size : 24,51 MB
Release : 2013-06-25
Category : Business & Economics
ISBN : 022601844X
Book Description
The recent recession has brought fiscal policy back to the forefront, with economists and policy makers struggling to reach a consensus on highly political issues like tax rates and government spending. At the heart of the debate are fiscal multipliers, whose size and sensitivity determine the power of such policies to influence economic growth. Fiscal Policy after the Financial Crisis focuses on the effects of fiscal stimuli and increased government spending, with contributions that consider the measurement of the multiplier effect and its size. In the face of uncertainty over the sustainability of recent economic policies, further contributions to this volume discuss the merits of alternate means of debt reduction through decreased government spending or increased taxes. A final section examines how the short-term political forces driving fiscal policy might be balanced with aspects of the long-term planning governing monetary policy. A direct intervention in timely debates, Fiscal Policy after the Financial Crisis offers invaluable insights about various responses to the recent financial crisis.
The Households Effects of Government Spending
Author : Francesco Giavazzi
Publisher :
Page : 40 pages
File Size : 11,42 MB
Release : 2012
Category : Government spending policy
ISBN :
Book Description
The households effects of government consumption
Author : Francesco Giavazzi
Publisher :
Page : 40 pages
File Size : 23,52 MB
Release : 2012
Category : Economics
ISBN :
Book Description
This paper provides new evidence on the effects of fiscal policy by studying, using household-level data, how households respond to shifts in government spending. Our identification strategy allows us to control for time-specific aggregate effects, such as the stance of monetary policy or the U.S.-wide business cycle. However, it potentially prevents us from estimating the wealth effects associated with a shift in spending. We find significant heterogeneity in households' response to a spending shock; the effects appear vary over time depending, among other factors, on the state of business cycle and, at a lower frequency, on the composition of employment (such as the share of workers in part-time jobs). Shifts in spending could also have important distributional effects that are lost when estimating an aggregate multiplier. Heads of households working relatively few (weekly) hours, for instance, suffer from a spending shock of the type we analyzed: their consumption falls, their hours increase and their real wages fall.
Economic Impact of Government Spending
Author : Richard K. Vedder
Publisher :
Page : 40 pages
File Size : 23,67 MB
Release : 1993
Category : Political Science
ISBN :
Book Description
The Distributional Effects of Government Spending and Taxation
Author : D. Papadimitriou
Publisher : Springer
Page : 324 pages
File Size : 49,19 MB
Release : 2006-05-26
Category : Political Science
ISBN : 0230378609
Book Description
This book focuses on the distributional consequences of the public sector and examines and documents, theoretically and empirically, the effects of government spending and taxation on personal distribution, and includes chapters investigating the relationship between the public sector and functional distribution of national income.
Understanding the Effects of Government Spending on Consumption
Author : Jordi Galí
Publisher :
Page : 72 pages
File Size : 11,58 MB
Release : 2005
Category : Business cycles
ISBN :
Book Description
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.
The Distributional Consequences of Government Spending and Taxation in the U.S., 1989 and 2000
Author : Edward N. Wolff
Publisher :
Page : 0 pages
File Size : 30,76 MB
Release : 2008
Category :
ISBN :
Book Description
We assess the effects of government expenditures and taxation on household economic well-being in the United States in 1989 and 2000. Net government expenditure is estimated as the difference between government expenditures incurred on behalf of the household sector - transfers and public consumption - and the taxes paid by that sector. We incorporate the estimates of net government expenditures into a wealth-adjusted measure of income. We find that overall inequality in our income measure is considerably reduced by net government expenditures. Results from decomposition analysis show that the inequality-reducing effect of net government expenditures owed more to expenditures than to taxes.
Expansionary Austerity New International Evidence
Author : Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 41 pages
File Size : 27,38 MB
Release : 2011-07-01
Category : Business & Economics
ISBN : 1455294691
Book Description
This paper investigates the short-term effects of fiscal consolidation on economic activity in OECD economies. We examine the historical record, including Budget Speeches and IMFdocuments, to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Using this new dataset, our estimates suggest fiscal consolidation has contractionary effects on private domestic demand and GDP. By contrast, estimates based on conventional measures of the fiscal policy stance used in the literature support the expansionary fiscal contractions hypothesis but appear to be biased toward overstating expansionary effects.
The Heterogeneous Effects of Government Spending
Author : Axelle Ferriere
Publisher :
Page : 36 pages
File Size : 11,41 MB
Release : 2016
Category :
ISBN :
Book Description
Empirical work suggests that while government spending induces an increase in output, it does not signi ficantly decrease private consumption. Contrary to these fi ndings, most representative-household models in macroeconomics predict a crowding-out of private consumption by government spending. To address this issue, we develop a model with heterogeneous households and uninsurable idiosyncratic risk as in Aiyagari (1994). In a model with heterogeneous households, progressivity of taxes is a key determinant of the eff ects of government spending. A rise in government spending can be expansionary, both for output and consumption, if financed with more progressive labor taxes. However, it is contractionary if financed with less progressive taxes. With a narrative approach, we use large changes in military spending to provide evidence that government spending in the United States has been expansionary only in periods of increasing progressivity.
