Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods
Article dans une revue: Nonseparable preferences over consumption and leisure can generate an increase in private consumption in response to government spending, as found in the data, in a frictionless business cycle model. However, the conditions on preferences required for these result to obtain hold if and only if the consumption good is inferior. Similarly, positive co-movement of consumption and hours worked occurs if and only if either consumption or leisure is inferior.
Auteur(s)
Florin Bilbiie
Revue
- Journal of Money, Credit and Banking
Date de publication
- 2009
Mots-clés JEL
Mots-clés
- Nonseparable preferences
- Fiscal policy
- Government spending
- Private consumption
- Inferior goods
Pages
- 443-450
URL de la notice HAL
Version
- 1
Volume
- 41