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The international effects of government spending composition /
This paper helps resolve a paradox in the literature, noticed by Alesina and Perotti (1995), which is that, although government employment is an important component of public spending, the debate on the effects of fiscal policy focuses almost exclusively on shocks to non-wage government consumption....
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Washington, D.C. :
International Monetary Fund, Fiscal Affairs Dept.,
2005.
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| Colección: | IMF working paper ;
WP/05/4. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper helps resolve a paradox in the literature, noticed by Alesina and Perotti (1995), which is that, although government employment is an important component of public spending, the debate on the effects of fiscal policy focuses almost exclusively on shocks to non-wage government consumption. We incorporate the distinction between spending for government employment and spending for non-wage government consumption in a "new open economy macroeconomics" model. Our results show that a permanent reduction in public employment in one country reduces relative private consumption and appreciates the domestic exchange rate if it is matched by a reduction in taxes. When the reduction in public employment is used to finance increased non-wage government consumption, the macroeconomic effects results are ambiguous, and are affected by the initial level of the public wage bill |
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| Descripción Física: | 1 online resource (18 pages) : illustrations |
| Bibliografía: | Includes bibliographical references (page 18). |
| ISBN: | 128204432X 9781282044326 9781451905595 1451905599 1462339751 9781462339754 1452781451 9781452781457 9786613797469 6613797464 |
| ISSN: | 2227-8885 ; |