Housework and fiscal expansions
Stefano Gnocchi,
Daniela Hauser and
Evi Pappa
Journal of Monetary Economics, 2016, vol. 79, issue C, 94-108
Abstract:
In an otherwise-standard business cycle model with housework, calibrated consistently with data on time use, we discipline complementarity between consumption and hours worked and relate its strength to the size of fiscal multipliers. Evidence on the substitutability between home and market goods confirms that complementarity is an empirically relevant driver of fiscal multipliers. However, in a housework model substantial complementarity can be generated without imposing a low wealth effect, which contradicts the microeconomic evidence. Also, explicitly modeling housework matters for assessing the welfare effects of government spending, which are understated by theories that neglect substitutability between home-produced and market goods.
Keywords: Government expenditure shocks; Home production (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304393216300150
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Housework and Fiscal Expansions (2014) 
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:eee:moneco:v:79:y:2016:i:c:p:94-108
DOI: 10.1016/j.jmoneco.2016.04.003
Access Statistics for this article
Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser
More articles in Journal of Monetary Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().