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Home Bias In Government Spending And Quasi Neutrality Of Fiscal Shocks

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Author Info
GANELLI, GIOVANNI

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Abstract

We show how introducing home bias in government spending in the redux model generates quasi neutrality of fiscal policy shocks. We offer an intuitive explanation for this result and we stress its policy implications.

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File URL: http://journals.cambridge.org/abstract_S1365100505040162
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Publisher Info
Article provided by Cambridge University Press in its journal Macroeconomic Dynamics.

Volume (Year): 9 (2005)
Issue (Month): 02 (April)
Pages: 288-294
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Handle: RePEc:cup:macdyn:v:9:y:2005:i:02:p:288-294_04

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