GOVERNMENT SPENDING, ENTRY, AND THE CONSUMPTION CROWDING-IN PUZZLE
نویسندگان
چکیده
منابع مشابه
Government Spending, Entry and the Consumption Crowding-in Puzzle
This paper documents empirically that net firm entry robustly rises after a US government spending expansion. We use this new finding to test the empirical validity of various model features that have been put forward to generate a crowding-in of consumption after an expenditure shock. In particular, we show that models with endogenous entry can simultaneously generate an increase in consumptio...
متن کاملThe Retirement-Consumption Puzzle: Actual Spending Change in Panel Data
The simple one-good model of life-cycle consumption requires that consumption be continuous over retirement; yet prior research based on partial measures of consumption or on synthetic panels indicates that spending drops at retirement, a result that has been called the retirement-consumption puzzle. Using panel data on total spending, nondurable spending and food spending, we find that spendin...
متن کاملHow Can Government Spending Stimulate Consumption?
Recent empirical work finds that government spending shocks can cause aggregate consumption to increase. This paper builds on the framework of imperfect information in Lucas (1972) and Lorenzoni (2009) to show how government spending can stimulate consumption. Owners of firms targeted by an increase in government spending perceive an increase in their permanent income relative to their future t...
متن کاملHow Does Government Spending Stimulate Consumption ?
Recent empirical work finds that government spending shocks cause aggregate consumption to increase over the business cycle, contrary to the predictions of Neoclassical and New Keynesian models. This paper proposes a mechanism to account for the consumption increase that builds on the framework of imperfect information in Lucas (1972) and Lorenzoni (2009). In my model, owners of firms targeted ...
متن کاملThe Effects of Government Spending on the Distribution of Consumption
This paper proposes an empirical framework to study the effects of a policy regime change defined as an unpredictable and permanent change in the policy parameters. In particular I show how to make conditional forecast and perform impulse response functions and counterfactual analysis. As an application, the effects of changes in fiscal policy rules in the US are investigated. I find that discr...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: International Economic Review
سال: 2017
ISSN: 0020-6598
DOI: 10.1111/iere.12241