The Keynesian multiplier and the Pigou effect under substitution between private and public consumption

Luis Corchon

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we present a fixprice model in which private and public consumption show some degree of substitution. We offer formulae for the Keynesian multiplier which depend on this degree of substitution. We also show that there is a Pigou effect and that, sometimes, this effect is larger than the Keynesian multiplier.

Keywords: Disequilibrium; Multiplier; Pigou; Effect (search for similar items in EconPapers)
JEL-codes: E12 E62 (search for similar items in EconPapers)
Date: 2009-04-21, Revised 2009-09-09
New Economics Papers: this item is included in nep-mac
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Related works:
Journal Article: The Keynesian multiplier and the Pigou effect under substitution between private and public consumption (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:18764

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