Working Capital Finance and the Balanced Budget Multiplier

Wen-ya Chang and Ching-chong Lai

The American Economist, 1992, vol. 36, issue 2, 61-65

Abstract: The macroeconomic literature has long agreed that the balanced budget multiplier is positive. By adopting the viewpoints of working capital finance on aggregate supply, this paper reexamines the impact of an expansion in government spending on output with a balanced government budget and finds that the balanced budget multiplier may be negative depending on the extent of the interest-sensitive aggregate supply effects.

Date: 1992
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/056943459203600208 (text/html)

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:sae:amerec:v:36:y:1992:i:2:p:61-65

DOI: 10.1177/056943459203600208

Access Statistics for this article

More articles in The American Economist from Sage Publications
Bibliographic data for series maintained by SAGE Publications ().