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Government Spending and Private Consumption: Some International Evidence

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  • Karras, Georgios

Abstract

This paper investigates the relationship between private consumption and publicly provided goods and services for a number of countries. The empirical results show that, in the aggregate, private and government consumption are best described as complementary in the sense that an increase in one raises the marginal utility of the other. The strength of this relationship is shown to be negatively affected by the government size. These findings are robust across all specifications tried. Copyright 1994 by Ohio State University Press.

Suggested Citation

  • Karras, Georgios, 1994. "Government Spending and Private Consumption: Some International Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(1), pages 9-22, February.
  • Handle: RePEc:mcb:jmoncb:v:26:y:1994:i:1:p:9-22
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