A perfect-foresight model of intertemporal utility maximization is used to analyze the current-account effects of a temporary increase in government spending. The relationship between the marginal utility of private consumption and the supply of public goods in the economy is shown to play a crucial role in determining the qualitative nature of the optimal current-account response. The link between the timing of the policy change and the magnitude of the current-account effect is also examined. Copyright 1989 by The editors of the Scandinavian Journal of Economics.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.