Title of article :
Revisitingthesupplysideeffectsofgovernmentspending
Author/Authors :
George-MariosAngeletos، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
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
Journal title :
Journal of Monetary Economics
