International Finance Discussion Papers: Understanding the Effects of Government Spending on Consumption by Jordi Gali

International Finance Discussion Papers: Understanding the Effects of Government Spending on Consumption

Jordi Gali

48 pages missing pub info (editions)

nonfiction politics
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Recent evidence on the effect of government spending shocks on consumption cannot be easily reconciled with existing optimizing business cycle models. We extend the standard New Keynesian model to allow for the presence of rule-of-thumb (non-Ricar...

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