Public-private consumption tradeoffs and the effectiveness of tax-financed fiscal policy

1982 ◽  
Vol 42 (3) ◽  
pp. 299-316
Author(s):  
Erkki Koskela
Keyword(s):  
Fiscal Policy ◽  
Private Consumption

Chapter I. The Economy in 1978

1979 ◽  
Vol 87 ◽  
pp. 13-24
Keyword(s):  
Fiscal Policy ◽  
Private Consumption ◽  
Public Expenditure ◽  
Labour Force ◽  
Retail Price ◽  
Capital Expenditures ◽  
Public Authorities ◽  
Price Inflation ◽  
The Public

The overall pattern of changes in real expenditure and output was markedly different in 1978 from that of 1977 (see chart 1). In 1977, largely because of the undertakings given in the Letter of Intent to the IMF of December 1976, fiscal policy was deliberately restrictive. The stance of fiscal policy was made harsher still by the public expenditure shortfall produced by the operation of the relatively unfamiliar cash limits. There was a fairly small fall in public authorities' current spending and much larger falls in capital expenditures. Private consumption, too, fell as stages II and III of the pay policy operated. Trade to 6 per cent of the labour force. Retail price inflation did, however, fall fractionally from 16.5 per cent in 1976 to 15.9 per cent in 1977 (and to 13 per cent through the year).

Effects of fiscal policy on private consumption: evidence from structural-balance fiscal rule deviations

2014 ◽  
Vol 21 (11) ◽  
pp. 776-781 ◽  
Author(s):  
Juan A. Correa ◽  
Christian Ferrada ◽  
Pablo Gutiérrez ◽  
Francisco Parro
Keyword(s):  
Fiscal Policy ◽  
Private Consumption ◽  
Structural Balance ◽  
Fiscal Rule

Tunisian Fiscal Policy Effects in a New Keynesian Model With Price Rigidity and Monopolistic Competition

2021 ◽  
Vol 10 (1) ◽  
pp. 13-31
Author(s):  
Slah Slimani
Keyword(s):  
Fiscal Policy ◽  
Interest Rate ◽  
Private Consumption ◽  
Monopolistic Competition ◽  
Aggregate Demand ◽  
Public Spending ◽  
New Keynesian ◽  
Keynesian Model ◽  
The Business Cycle ◽  
The Interest Rate

This paper applies a multivariate neo-Keynesian DSGE model to study the effects of changes in Tunisian public spending on the business cycle, private consumption, wages, interest rate, and inflation rate in the presence of monopolistic competition and price nominal short-term rigidity. The main finding of this paper shows a Tunisian pro-cyclical fiscal policy. Expansionary public spending has two initial effects. The output increases due to the usual increase in labor supply, and aggregate demand increases due to an incomplete crowding out of private consumption. By increasing aggregate demand, the central bank increases the nominal interest rate, which moves in concert with inflation in order to counteract inflationary pressures. Households reduce their consumer spending at the same time as the real interest rate increases. Some companies are responding to the change in the interest rate by reducing their expenses, their employment demands, and their capital utilization rates.

scholarly journals DOES FISCAL POLICY MATTER? BLINDER AND SOLOW REVISITED

2011 ◽  
Vol 16 (S1) ◽  
pp. 149-166 ◽  
Author(s):  
Roger E. A. Farmer ◽  
Dmitry Plotnikov
Keyword(s):  
New York ◽  
Fiscal Policy ◽  
Private Consumption ◽  
Temporary Increase ◽  
Consumption Expenditure ◽  
Representative Agent ◽  
Agent Model ◽  
Oxford University ◽  
Government Purchases ◽  
Crowd Out

This paper uses the old Keynesian representative agent model developed by Roger E. A. Farmer [Expectations, Employment and Prices. New York: Oxford University Press (2010)] to answer two questions: (1) Do increased government purchases crowd out private consumption? (2) Do increased government purchases reduce unemployment? Farmer compared permanent tax-financed expenditure paths and showed that the answer to (1) was yes and the answer to (2) was no. We generalize his result to temporary bond-financed paths of government purchases that are similar to the actual path that occurred during WWII. We find that a temporary increase in government purchases does crowd out private consumption expenditure as in Farmer. However, in contrast to Farmer's experiment, we find that a temporary increase in government purchases can also reduce unemployment.

scholarly journals Can fiscal policy spur fertility?

Equilibrium ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 167-179
Author(s):  
Janusz Kudła ◽  
Konrad Walczyk
Keyword(s):  
Fiscal Policy ◽  
Private Consumption ◽  
Utility Maximization ◽  
Pension System ◽  
Value Added ◽  
Comparative Statics ◽  
Fiscal Incentives ◽  
Fertility Effect ◽  
Low Birthrate ◽  
The Impact

Research background: The decreasing fertility rate is a serious problem for policymakers as it affects the pension system as well as private consumption and savings. It seems reasonable to analyze whether fiscal policy may mitigate the low birthrate problem. Purpose of the article: In this paper we strive to answer the question whether fiscal incentives spur fertility if parents are rational. Methods: A theoretical economic model of utility maximization is applied to analyze the impact of fiscal policy on fertility. The conclusions are based on the analysis of comparative statics simulation calibrated for actual data from Poland. Findings & Value added: The results indicate that a substantial fertility effect can be obtained by raising subsidies for children or general benefits for families.

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