Fiscal Policy And The Composition Of Private Consumption: Some Evidence From The U.A. And Canada
AbstractThis paper develops a generalized version of the life-cycle model in which consumers' preferences are defined over components of consumption and are affected by the level of public expenditure on goods and services. The model implies that the crowding out of private consumption could in fact be a direct demand side phenomenon caused by the way preferences respond to a change in public spending. Evidence from U.S. and Canadian data for the period 1935-1995 confirms this theoretical conjecture as well as implying that in both countries demand for durable goods is likely to show relatively large swings which may undermine the stability of the sector and harm the supply side. [E22. E62].
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Economic Journal.
Volume (Year): 16 (2002)
Issue (Month): 1 ()
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Other versions of this item:
- Jim Malley & Hassan Molana, 2000. "Fiscal Policy And The Composition Of Private Consumption: Some Evidence From The U.S. And Canada," Dundee Discussion Papers in Economics 113, Economic Studies, University of Dundee.
- Jim Malley & Hassan Molana, . "Fiscal Policy and the Composition of Private Consumption: Some Evidence from the U.S. and Canada," EPRU Working Paper Series 99-14, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Jim Malley & Hassan Molana, 1998. "Fiscal Policy and the Composition of Private Consumption: Some Evidence from the U.S. and Canada," Working Papers 9804, Business School - Economics, University of Glasgow.
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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