EconPapers    
Economics at your fingertips  
 

Government spending multipliers: New results from a model of naiveté

Yoonseok Choi ()

Economics Bulletin, 2019, vol. 39, issue 3, 2122-2128

Abstract: The aim of this paper is to explore dynamic impacts of a government spending shock on key macro-aggregates by developing a neoclassical model of naiveté. The main finding reveals that the model of naiveté delivers much larger present-value multipliers of output than a typical neoclassical model. Moreover, the model of naiveté can resolve the consumption puzzle of government spending by producing the crowding-in effect on consumption. Dynamic responses and multiplier effects of other variables are also discussed.

Keywords: Government spending; present-value multipliers; hyperbolic discounting; naiveté (search for similar items in EconPapers)
JEL-codes: E6 E3 (search for similar items in EconPapers)
Date: 2019-09-30
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P198.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-19-00594

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2020-12-14
Handle: RePEc:ebl:ecbull:eb-19-00594