Autore
Marrinan, Jane

Titolo
The effects of government spending on saving and investment in an open economy
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1992 - Fascicolo: 72 - Pagina iniziale: 1 - Pagina finale: 34

This paper argues that the Feldstein and Horioka (1980) cross country correlations and observed time series correlations between national saving and domestic investment may be a consequence of government spending patterns. I analyze the effects of government consumption in an intertemporal equilibrium model with both tradable and nontradable goods. When government consumption falls largely on nontradables the model’s predictions are consistent with a number of empirical observations in OECD countries.



Testo completo: http://hdl.handle.net/1814/423

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