EconPapers    
Economics at your fingertips  
 

Government Purchases and Real Interest Rates

N. Gregory Mankiw ()

Journal of Political Economy, 1987, vol. 95, issue 2, 407-19

Abstract: This paper examines the dynamic impact of government purchases in a simple general equilibrium model with both durable and nondurable consumer goods as well as productive capital. The model generates perhaps surprising results. In particular, increases in government purchases are shown to cause reductions in real interest rates. The model thus provides a possible explanation for the observed behavior of real interest rates around wars. Copyright 1987 by University of Chicago Press.

Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (30) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1086/261462 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.

Related works:
Working Paper: Government Purchases and Real Interest Rates (1987) Downloads
Working Paper: Government Purchases and Real Interest Rates (1986) Downloads
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:ucp:jpolec:v:95:y:1987:i:2:p:407-19

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2019-05-28
Handle: RePEc:ucp:jpolec:v:95:y:1987:i:2:p:407-19