Nonseparable Preferences, Frisch Labor Supply, and the Consumption Multiplier of Government Spending
One Solution to a Fiscal Policy Puzzle
Dados Bibliográficos
| ID | 19034974 |
|---|---|
| Autores | Florin O Bilbiie, Florin Bilbiie (autor correspondente) |
| Ano | 2011 |
| Volume | 43 |
| Fascículo | 1 |
| Páginas | 221-251 |
| Data de publicação | 2011-01-19 |
| Peer Reviewed | Sim |
| Open Access | Sim |
| Tipo | ARTICLE |
| Periódico | Journal of money credit and banking (JOURNAL) |
| Identificadores do periódico | ISSN: 0022-2879 • E-ISSN: 1538-4616 |
| Editora | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1538-4616.2010.00372.x |
| OpenAlex | W2141928341 |
| Idioma | EN |
| Citações recebidas | 8 |
| Referências citadas | 27 |
This paper proposes a theoretical explanation of the positive consumption multipliers of government spending often found in the data. The explanation requires two ingredients. First, labor demand expands (e.g., prices are sticky). Second, general nonseparable preferences over consumption and leisure should be such that the two goods are substitutes; that is, Frisch labor supply elasticity is lower than the constant-consumption elasticity; this implies that constant-consumption labor supply shifts left. Existing empirical evidence on the relative magnitudes of the two elasticities supports this hypothesis. The parametric conditions under which the result occurs are consistent with restrictions of concavity and noninferiority of consumption and leisure
Consumer spending · Economics · Empirical evidence · Fiscal policy · Government spending · Labour economics · Macroeconomics · Market economy · Microeconomics · Monetary economics · Price elasticity of demand · Price elasticity of supply · Recession · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact · Politics, Economics, and Education Policy
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| Obras citantes distintas | 8 |
|---|---|
| Citações por ano | 0,53 |
| Intervalo de citações | 2011 - 2026 (16) |
| Velocidade de citação | current |
| Altamente citado | Não |
| Tipos de citação | Neutras: 8 |