Government consumption and fiscal policy: some evidence from Japan
AbstractJapanese data from 1971 and 1995 are used to estimate the marginal rate of substitution between private consumption and government consumption, and to empirically analyse the validity of the Ricardian equivalence theorem. The marginal rate of substitution between government expenditure and private consumption is found to be higher in Japan than in studies using US data. In other words, these two types of consumption are closer substitutes in Japan than in the US. The data negate the Ricardian equivalence theorem. However, it should be noted that the perceived wealth effect is small and has a value between 0.0087 and 0.019.
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 Taylor and Francis Journals in its journal Applied Economics Letters.
Volume (Year): 6 (1999)
Issue (Month): 9 ()
Contact details of provider:
Web page: http://www.tandf.co.uk/journals/routledge/13504851.html
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Takeo Hori & Noritaka Maebayashi, 2013. "Indeterminacy and utility-generating government spending under balanced-budget fiscal policies," Discussion Papers in Economics and Business 13-13, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Sanghamitra Bandyopadhyay & Joan Esteban, 2009.
"Redistributive Taxation, Public Expenditure, and Size of Governent,"
UFAE and IAE Working Papers
799.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Sanghamitra Bandyopadhyay & Joan Esteban, 2009. "Redistributive Taxation, Public Expenditure, and Size of Governent," Working Papers 416, Barcelona Graduate School of Economics.
- Sanghamitra Bandyopadhyay & Joan Esteban, 2007.
"Redistributive Taxation and PublicExpenditures,"
STICERD - Distributional Analysis Research Programme Papers
95, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Okubo, Masakatsu, 2003. "Intratemporal substitution between private and government consumption: the case of Japan," Economics Letters, Elsevier, vol. 79(1), pages 75-81, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
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.