A disaggregated approach to the determination of government spending multipliers created by Orcan Cortuk
Material type:
- text
- unmediated
- volume
- 17487870
- HD1918
Item type | Current library | Call number | Vol info | Status | Date due | Barcode | |
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Main Library - Special Collections | HD1918 JOU (Browse shelf(Opens below)) | Vol. 16, No. 1 pages 31-45 | Not for loan |
This paper contributes to the debate on the effects of fiscal stimuli by showing that the impact of government expenditure depends on its composition. Government spending is not homogeneous and its effects on economic variables vary depending on its type. Comparing the effects of three types of government spending (investment, wage and non-wage components of consumption), it is concluded that government investment shocks are not the most effective spending shocks in boosting output, contrary to common opinion. Instead, the wage component government consumption has the biggest impact, whereas the non-wage component government consumption has the least. This variation stems mainly from the effects on (private) consumption.
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