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Are Private Sector Consumption Decisions Affected by Public Sector Consumption?

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  • Ólan T. Henry
  • Nilss Olekalns

Abstract

This paper looks at the interaction between public and private consumption in Australia. The results show that there is a long‐run equilibrium relation between private and public consumption. However, the nature of this relation changed during the 1980s from one of complementarity to one of substitutability.

Suggested Citation

  • Ólan T. Henry & Nilss Olekalns, 2001. "Are Private Sector Consumption Decisions Affected by Public Sector Consumption?," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 361-373, December.
  • Handle: RePEc:bla:ecorec:v:77:y:2001:i:239:p:361-373
    DOI: 10.1111/1475-4932.00029
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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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