Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods
AbstractNonseparable preferences over consumption and leisure can generate an increase in private consumption in response to government spending, as found in the data, in a frictionless business cycle model. However, the conditions on preferences required for these result to obtain hold if and only if the consumption good is inferior. Similarly, positive co-movement of consumption and hours worked occurs if and only if either consumption or leisure is inferior. Copyright (c) 2009 The Ohio State University.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.
Volume (Year): 41 (2009)
Issue (Month): 2-3 (03)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stefano Eusepi & Bruce Preston, 2008.
"Expectations, Learning and Business Cycle Fluctuations,"
NBER Working Papers
14181, National Bureau of Economic Research, Inc.
- Stefano Eusepi & Bruce Preston, 2011. "Expectations, Learning, and Business Cycle Fluctuations," American Economic Review, American Economic Association, vol. 101(6), pages 2844-72, October.
- Stefano Eusepi & Bruce Preston, 2008. "Expectations, Learning And Business Cycle Fluctuations," CAMA Working Papers 2008-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Stefano Eusepi & Bruce Preston, 2009.
"Labor supply heterogeneity and macroeconomic comovement,"
399, Federal Reserve Bank of New York.
- Stefano Eusepi & Bruce Preston, 2009. "Labor Supply Heterogeneity and Macroeconomic Co-movement," NBER Working Papers 15561, National Bureau of Economic Research, Inc.
- Iwata, Yasuharu, 2013. "Two fiscal policy puzzles revisited: New evidence and an explanation," Journal of International Money and Finance, Elsevier, vol. 33(C), pages 188-207.
- Roberto Perotti, 2007.
"In Search of the Transmission Mechanism of Fiscal Policy,"
NBER Working Papers
13143, National Bureau of Economic Research, Inc.
- Roberto Perotti, 2008. "In Search of the Transmission Mechanism of Fiscal Policy," NBER Chapters, in: NBER Macroeconomics Annual 2007, Volume 22, pages 169-226 National Bureau of Economic Research, Inc.
- Andrea Colciago, 2006. "Sticky wages and rule of thumb consumers," Working Papers 98, University of Milano-Bicocca, Department of Economics, revised Sep 2006.
- Munechika Katayama & Kwang Hwan Kim, . "Costly Labor Reallocation, Non-Separable Preferences, and Expectation Driven Business Cycles," Departmental Working Papers 2010-05, Department of Economics, Louisiana State University.
- Furlanetto, Francesco & Seneca, Martin, 2014. "Investment shocks and consumption," European Economic Review, Elsevier, vol. 66(C), pages 111-126.
- Pontus Rendahl, 2014. "Fiscal Policy in an Unemployment Crisis," Cambridge Working Papers in Economics 1405, Faculty of Economics, University of Cambridge.
- Patrick F?ve & Julien Matheron & Jean-Guillaume Sahuc, 2013.
"A Pitfall with Estimated DSGE-Based Government Spending Multipliers,"
American Economic Journal: Macroeconomics,
American Economic Association, vol. 5(4), pages 141-78, October.
- Fève, P. & Matheron, J. & Sahuc, J.G., 2012. "A Pitfall with DSGE-Based, Estimated, Government Spending Multipliers," Working papers 379, Banque de France.
- Monacelli, Tommaso & Perotti, Roberto, 2008.
"Fiscal Policy, Wealth Effects and Markups,"
CEPR Discussion Papers
7099, C.E.P.R. Discussion Papers.
- Francesco FURLANETTO, 2007. "Fiscal Shocks and the Consumption Response when Wages are Sticky," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 07.11, Université de Lausanne, Faculté des HEC, DEEP.
- Robert E. Hall, 2009.
"By How Much Does GDP Rise if the Government Buys More Output?,"
NBER Working Papers
15496, National Bureau of Economic Research, Inc.
- Robert E. Hall, 2009. "By How Much Does GDP Rise If the Government Buys More Output?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(2 (Fall)), pages 183-249.
- Takao Fujii & Kazuki Hiraga & Masafumi Kozuka, 2012. "Analyses of Public Investment Shock in Japan: Factor Augmented Vector Autoregressive Approach," Keio/Kyoto Joint Global COE Discussion Paper Series 2012-006, Keio/Kyoto Joint Global COE Program.
- Hebous, Shafik, 2009.
"The Effects of Discretionary Fiscal Policy on Macroeconomic Aggregates: A Reappraisal,"
23300, University Library of Munich, Germany, revised Jun 2010.
- Shafik Hebous, 2011. "The Effects Of Discretionary Fiscal Policy On Macroeconomic Aggregates: A Reappraisal," Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), pages 674-707, 09.
- Zubairy, Sarah, 2010. "Explaining the Effects of Government Spending Shocks," MPRA Paper 26051, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.