Title of article
Revisitingthesupplysideeffectsofgovernmentspending
Author/Authors
George-MariosAngeletos، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
17
From page
137
To page
153
Abstract
Werevisitthemacroeconomiceffectsofgovernmentconsumptionintheneoclassical
growthmodelwhenagentsfaceuninsuredidiosyncraticinvestmentrisk.Under
completemarkets,apermanentincreaseingovernmentconsumptionhasnolong-run
effectoninterestratesandcapitalintensity,whileitincreasesworkhoursduetothe
negativewealtheffect.Theseresultsareupsetonceweallowforincompletemarkets.
The samenegativewealtheffectnowcausesareductioninrisktakingandthedemand
for investment.Thisleadstoalowerrisk-freerateand,undercertainconditions,alsoto
a lowercapital–laborratioandlowerproductivity
Keywords
Fiscal policyGovernmentspendingIncomplete risksharingEntrepreneurialrisk
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846281
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