The Keynesian multiplier and the Pigou effect under substitution between private and public consumption
AbstractIn this paper we present a fixprice model in which private and public consumption show some degree of substitution. We offer formulae for the Keynesian multiplier which depend on this degree of substitution. We also show that there is a Pigou effect and that, sometimes, this effect is larger than the Keynesian multiplier.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 1 ()
Contact details of provider:
Keynes; Multiplier; Unemployment; Pigou;
Other versions of this item:
- Corchon, Luis, 2009. "The Keynesian multiplier and the Pigou effect under substitution between private and public consumption," MPRA Paper 18764, University Library of Munich, Germany, revised 09 Sep 2009.
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dreze, Jacques H, 1975. "Existence of an Exchange Equilibrium under Price Rigidities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 301-20, June.
- Robert J. Barro, 1980.
"Output Effects of Government Purchases,"
NBER Working Papers
0432, National Bureau of Economic Research, Inc.
- Silvestre, Joaquim, 1982. "Fixprice analysis in exchange economies," Journal of Economic Theory, Elsevier, vol. 26(1), pages 28-58, February.
- Benassy, Jean-Pascal, 1975.
"Neo-Keynesian Disequilibrium Theory in a Monetary Economy,"
Review of Economic Studies,
Wiley Blackwell, vol. 42(4), pages 503-23, October.
- Benassy Jean-pascal, 1974. "Neokeynesian disequilibrium theory in a monetary economy," CEPREMAP Working Papers (Couverture Orange) 7402, CEPREMAP.
- Benassy, Jean-Pascal, 2007. "Ricardian equivalence and the intertemporal Keynesian multiplier," Economics Letters, Elsevier, vol. 94(1), pages 118-123, January.
- Heijdra, Ben J & Ligthart, Jenny E & van der Ploeg, Frederick, 1998.
"Fiscal Policy, Distortionary Taxation, and Direct Crowding Out under Monopolistic Competition,"
Oxford Economic Papers,
Oxford University Press, vol. 50(1), pages 79-88, January.
- Heijdra , B.J. & Ligthart, J.E. & Ploeg, F. van der, 1998. "Fiscal policy, distortionary taxation, and direct crowding out under monopolistic competition," Open Access publications from Tilburg University urn:nbn:nl:ui:12-376256, Tilburg University.
- Linnemann, Ludger & Schabert, Andreas, 2004. "Can fiscal spending stimulate private consumption?," Economics Letters, Elsevier, vol. 82(2), pages 173-179, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.