This paper uses restrictions implied by cointegration to identify the permanent and transitory elements (the “trendÔand “cyclicalÔ) of household asset wealth. We focus our attention on a cointegrated system of three aggregate variables that are clearly central to the behavior of household spending: consumption, asset wealth and labor earnings. Because this cointegrated system is motivated by a ...

We study the effects of government spending by using a structural, large dimensional, dynamic factor model. We find that the government spending shock is non-fundamental for the variables commonly used in the structural VAR literature, so that its impulse response functions cannot be consistently estimated by means of a VAR. Government spending raises both consumption and investment, with no ev...

In recent years, concern has increased over the rapid growth of health care spending, especially spending on behalf of the aged. In 1987, those 65 years or over comprised 12 percent of the population but consumed 36 percent of total personal health care. This article is an examination of the current and future composition of the population and effects on health care spending. National health ac...

This research examines how credit card debt affects consumer spending. In five experimental and field studies, the authors demonstrate that outstanding credit card debt increases spending for consumers with high self-control. They also show that this effect can be eliminated by increasing the available credit on the credit card. Thus, when the available credit is low, consumers with greater sel...

The Keynesian multiplier effect is reinterpreted and several issues that may have misled assessments of the effect of fiscal spending are discussed. It is shown that even in the textbook Keynesian framework some transfer policy ‘reduces’ aggregate demand and that public works spending may completely crowd out private consumption. Useless public works are found to be equivalent to transfers alth...

abstract soil compaction is a main factor that reduces the cane yield in sugarcane fields, in southwest of iran, especially in ratoon cropping system. therefore, sub-soiling practices could alleviate adverse effects of compaction and increased yield. in according to this aim, a study was to evaluate the effect of  ratooning practice systems consisting of control (no subsoiler), two and four sha...

aslan hashemi1, ali reza shokuhfar*1 1-department of agronomy, islamic azad university, ahvaz branch, ahvaz, iran author for correspondence * corresponding author email address: [email protected] received: 10 june 2015                                                                         accepted: 20 october 2015 abstract soil compaction is a main factor that reduces sugarcane yield...

This paper analyzes the transmission of fiscal policy shocks in economies at different degrees of integration into global goods markets. First, using a quantitative business cycle model, we show that trade integration (measured by openness) does not alter the effects of government spending on output, but mutes the negative impact of government spending shocks on private demand. In fact, for ver...