MARC Record from University of Toronto

LEADER: 02070cam 2200265 a 4500
001 ocm62080957
005 20060213112501.0
008 051014s2005 dcua b i000 0 eng d
043 $ae------
100 1 $aCoenen, Günter.
245 10 $aDoes government spending crowd in private consumption? :$btheory and empirical evidence for the euro area /$cprepared by Günter Coenen and Roland Straub.
260 $aWashington, D.C. :$bInternational Monetary Fund, Monetary and Financial Systems Dept.,$cc2005.
300 $a36 p. :$bill. ;$c28 cm.
440 0 $aIMF working paper ;$vWP/05/159
500 $a"August 2005."
504 $aIncludes bibliographical references (p. 35-36).
530 $aAlso available on the World Wide Web.
520 $aIn this paper, we revisit the effects of government spending shocks on private consumption within an estimated New-Keynesian DSGE model of the euro area featuring non-Ricardian households. Employing Bayesian inference methods, we show that the presence of non- Ricardian households is in general conducive to raising the level of consumption in response to government spending shocks when compared with the benchmark specification without non-Ricardian households. However, we find that there is only a fairly small chance that government spending shocks crowd in consumption, mainly because the estimated share of non-Ricardian households is relatively low, but also because of the large negative wealth effect induced by the highly persistent nature of government spending shocks.
650 0 $aConsumption (Economics)$zEuropean Union countries$xEconometric models.
650 0 $aFiscal policy$zEuropean Union countries$xEconometric models.
650 0 $aCrowding out (Economics)$zEuropean Union countries$xEconometric models.
651 0 $aEuropean Union countries$xAppropriations and expenditures$xEconometric models.
700 1 $aStraub, Roland.
710 2 $aInternational Monetary Fund.$bMonetary and Financial Systems Dept.
949 $aUN9..MF...6-2005I159$wLC$c1$i5779704-1001$lGOVPUBS$mDATAMAPGOV$rN$sY$tBOOK$u13/2/2006