Browsing Titles index "The Effect of Public Spending on Consumption: Reconciling Theory and Evidence"
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(Université de Montréal. Département de sciences économiques., 2008-09)Recent empirical evidence from vector autoregressions (VARs) suggests that public spending shocks increase (crowd in) private consumption. Standard general equilibrium models predict the opposite. We show that a standard real business cycle (RBC) model ...