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Optimal Government Spending in a Business Cycle Model

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Author Info
Steve Ambler () (Center for Research on Economic Fluctuations and Employment, UQAM)
Emanuela Cardia () (Center for Research on Economic Fluctuations and Employment, UQAM)

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Abstract

We build a model of optimal time-consistent public spending in a dynamic general equilibrium model of the business cycle. We analyze the welfare properties of optimal public spending and characterize the optimal response of spending to exogenous economic shocks.

Nous analysons les dépenses publiques optimales et intertemporellement cohérentes dans le contexte d'un modèle dynamique d'équilibre général du cycle économique. Nous calculons les effets des dépenses optimales sur le bien-être social et nous caractérisons la réponse optimale des dépenses publiques aux chocs exogènes.

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Publisher Info
Paper provided by CREFE, Université du Québec à Montréal in its series Cahiers de recherche CREFE / CREFE Working Papers with number 44.

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Length: 46 pages
Date of creation: Sep 1996
Date of revision:
Handle: RePEc:cre:crefwp:44

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Related research
Keywords: business cycles; general equilibrium; optimal policy; governemnt spending;

Find related papers by JEL classification:
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

Cited by:
(explanations, 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.)

  1. Hafedh Bouakez & Nooman Rebei, 2003. "Why Does Private Consumption Rise After a Government Spending Shock?," Working Papers 03-43, Bank of Canada. [Downloadable!]
    Other versions:
  2. Suescun, Rodrigo, 2005. "Fiscal space for investment in infrastructure in Colombia," Policy Research Working Paper Series 3629, The World Bank. [Downloadable!]
  3. Amir Kia, 2004. "Deficits, Debt Financing, Monetary Policy and Inflation in Developing Countries: Internal or External Factors?," Carleton Economic Papers 04-15, Carleton University, Department of Economics. [Downloadable!]
  4. Amir Kia, 2006. "Deficits, Debt Financing, Monetary Policy and Inflation in Developing Countries: Internal or External Factors? Evidence from Iran," Carleton Economic Papers 06-03, Carleton University, Department of Economics. [Downloadable!]
Statistics
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This page was last updated on 2009-11-6.


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