| dc.creator |
Heijdra, Ben J. |
|
| dc.creator |
Ligthart, Jenny E. |
|
| dc.date |
2006 |
|
| dc.date.accessioned |
2013-10-16T07:03:01Z |
|
| dc.date.available |
2013-10-16T07:03:01Z |
|
| dc.date.issued |
2013-10-16 |
|
| dc.identifier |
http://hdl.handle.net/10419/19125 |
|
| dc.identifier |
ppn:510018335 |
|
| dc.identifier.uri |
http://koha.mediu.edu.my:8181/xmlui/handle/10419/19125 |
|
| dc.description |
The paper studies the short-run, transitional, and long-run output effects of permanent and temporary shocks in public consumption under various financing methods. To this end, a dynamic macroeconomic model for a closed economy is developed, which features a perfectly competitive final goods sector and a monopolistically competitive intermediate goods sector. Finitely lived households consume final goods, supply labor, and save part of their income. Amongst the findings for a permanent rise in public consumption are: (i) monopolistic competition increases the absolute value of the balanced-budget output multiplier; (ii) positive long-run output multipliers are obtained only if the generational turnover effect is dominated by the intertemporal labor supply effect; (iii) short-run out- put multipliers under lump-sum tax financing are smaller than long-run output multipliers if labor supply is elastic; and (iv) bond financing reduces the size of long-run output multipliers as compared to lump-sum tax financing and may give rise to non-monotonic adjustment paths if labor supply is sufficiently elastic and the speed of adjustment of lump-sum taxes is not too high. Temporary bondfinanced fiscal shocks are shown to yield: (i) permanent effects on output; and (ii) negative long-run output multipliers. |
|
| dc.language |
eng |
|
| dc.publisher |
|
|
| dc.relation |
CESifo working papers 1661 |
|
| dc.rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
|
| dc.subject |
E12 |
|
| dc.subject |
L16 |
|
| dc.subject |
E63 |
|
| dc.subject |
ddc:330 |
|
| dc.subject |
fiscal policy |
|
| dc.subject |
output multipliers |
|
| dc.subject |
Yaari-Blanchard model |
|
| dc.subject |
overlapping generations |
|
| dc.subject |
monopolistic competition |
|
| dc.subject |
love of variety |
|
| dc.subject |
Finanzpolitik |
|
| dc.subject |
Multiplikator |
|
| dc.subject |
Monopolistischer Wettbewerb |
|
| dc.subject |
Overlapping Generations |
|
| dc.subject |
Theorie |
|
| dc.subject |
Finanzierung |
|
| dc.subject |
Theorie |
|
| dc.title |
Fiscal policy, monopolistic competition, and finite lives |
|
| dc.type |
doc-type:workingPaper |
|