Can government spending increase private consumption? The role of complementarity

Giovanni Ganelli and Juha Tervala

Economics Letters, 2009, vol. 103, issue 1, 5-7

Abstract: It is empirically observed that private consumption responds positively to fiscal shocks. We offer an explanation for this stylized fact, based on the idea of complementarity between public and private consumption.

Keywords: Fiscal; policy; Private; consumption; multiplier; Complementarity (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (35)

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