全球智库信息集成服务系统(G2TT): DP7087 Charitable Giving for Overseas Development: UK Trends Over a Quarter Century

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP7087
	DP7087 Charitable Giving for Overseas Development: UK Trends Over a Quarter Century
	Tony Atkinson; John Micklewright; Peter G. Backus; Cathy Pharoah; Sylke Schnepf
发表日期	2008-12-23
出版年	2008
语种	英语
摘要	We document that an increase in government purchases generates a rise in consumption, the real and the product wage, and a fall in the markup. This evidence is robust across alternative empirical methodologies used to identify innovations in government spending (structural VAR vs. narrative approach). Simultaneously accounting for these facts is a formidable challenge for a neoclassical model, which relies on the wealth effect on labor supply as the main channel of transmission of unproductive government spending shocks. The goal of this paper is to explore further the role of the wealth effect in the transmission of government spending shocks. To this end, we build an otherwise standard business cycle model with price rigidity, in which preferences can be consistent with an arbitrarily small wealth effect on labor supply, and highlight that such effect is linked to the degree of complementarity between consumption and hours. The model is able to match our empirical evidence on the effects of government spending shocks remarkably well. This happens when the preferences are such that the positive wealth effect on labor supply is small and therefore the negative wealth effect on consumption is, somewhat counterintuitively, large.
主题	International Macroeconomics
关键词	Government spending Markup Private consumption Wealth effect
URL	https://cepr.org/publications/dp7087
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/535924
推荐引用方式 GB/T 7714	Tony Atkinson,John Micklewright,Peter G. Backus,et al. DP7087 Charitable Giving for Overseas Development: UK Trends Over a Quarter Century. 2008.