Suchergebnisse

Este artículo documenta un aumento secular en la proporción de compras del sector privado en el gasto de consumo del gobierno: con el tiempo, el gobierno compra relativamente más bienes del sector privado y depende menos de su propia producción de valor agregado. Construimos un modelo de equilibrio general en el que el cambio tecnológico específico de la inversión explica la variación en la estructura del gasto público. El modelo predice que este proceso secular altera la transmisión de los shocks de gasto público, al aumentar la respuesta del valor añadido privado, mientras que la respuesta de las horas trabajadas se reduce. Validamos estos resultados con evidencia empírica novedosa sobre los efectos del gasto público ; We document a secular increase in the share of purchases from the private sector in government consumption spending: over time the government purchases relatively more private-sector goods, and relies less on its own production of value added. We build a general equilibrium model in which investment-specific technological change accounts for the changing structure of government spending. The model predicts that this secular process alters the transmission of government spending shocks by raising the response of private value added, while dampening the response of hours. We validate these results with novel empirical evidence on the effects of government spending across countries

In last few decades, the study of the relationship between the real government consumption and rea.· private consumption has attracted the attention of many economists and policy makers. Keynesians, or the one hand, holds that government spending has a positive or expansionary effect on privat£ spending; neo-c/assicals, on the other hand, argue that government spending crowds out privat£ spending. The supporters of Ricardian Equivalence Hypothesis advocate for no effect of govern mer.= spending on private spending. In the existence of this paradoxical evidence, this paper attempts t: investigate the dynamics of the interaction among government and private consumption in India fo • the period 1960-61 to 2008-09. Using the Cointegration test and error correction model, the study add: the literature the evidence in support of the long-run equilibrium relationship among variables. Tr:: causality test in the error correction model indicates that there exists a unidirectional cause relationship which runs from private consumption expenditure to government consumptio· expenditure in the long-run. However, the Granger causality test indicates that there is no short-n. - causality between them.

Models of international tax competition typically suppose a benevolent government. This paper considers a government with self-interested consumption objectives in the presence of distorting taxes on capital investment, savings, & labor income. In such a model, the effects of international tax coordination on the welfare of residents are ambiguous when a residence-based capital tax is not available. In contrast, government use of taxes is inefficient from the viewpoint of residents in the presence of residence-based capital taxation. 13 References. Adapted from the source document.

Purpose– This paper aims to reconcile conflicting findings in the literature regarding the extent of consumption smoothing of sub-federal governments.Design/methodology/approach– This paper uses a panel of US state and local government data from 1973 to 2000 to find the extent of consumption smoothing among US state and local governments.Findings– It is found that about 30 percent of spending is determined by permanent resources. Additionally, states with more stringent balanced budget rules are found to smooth more than states with the least stringent balanced budget rules, which do not smooth at all. There is some evidence that liquidity constraints may cause the non-optimal behavior of the states with the least restrictive requirements as they have higher average net debt per capita and face higher risk premia than those with the most stringent rules.Research limitations/implications– Results differ from research using aggregate US data, where it is found that essentially all changes in state and local government spending are due to changes in current resources. The conflict is attributed to panel vs aggregate data use. Other research finds greater smoothing in Norway, where about 65 percent of local government spending is determined by permanent resources, and Sweden, with at least 90 percent of spending changes due to changes in permanent resources. This conflict may be due to institutional differences. Further research is needed in this area.Originality/value– This paper fills a gap in the literature on consumption smoothing by considering a panel of US state and local governments.

This paper employs a Structural VAR technique to examine the macroeconomic effects ofgovernment consumption in the Portuguese economy. The key findings are as follows. An ex-pansionary government consumption shock triggers an increase in output, crowds-in privateconsumption, increases the long-term interest rate, decreases the international competitivenessby appreciating the real exchange rate and has a negative impact on the trade balance. Ad-ditionally, this paper also finds evidence that disposable income has an important role in thetransmission mechanism of fiscal shocks and that a significant portion of the fiscal stimulusleaks abroad.

This paper analyses the relation between private and government consumption in 23 OECD countries between 1970 and 2001. In particular it addresses the issue of whether government consumption is a substitute for or a complement to private consumption. The empirical analysis is made with panel cointegration analysis, using the newly developed CUSUM cointegration test by \cite{westerlund05}. The method is extended by using a bootstrap technique to control for cross-sectional dependence. The results show that government consumption is a complement to private consumption for most of the countries and a substitute for only a few of the countries.