Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods

Florin Bilbiie

Journal of Money, Credit and Banking, 2009, vol. 41, issue 2‐3, 443-450

Abstract: Nonseparable preferences over consumption and leisure can generate an increase in private consumption in response to government spending, as found in the data, in a frictionless business cycle model. However, the conditions on preferences required for these result to obtain hold if and only if the consumption good is inferior. Similarly, positive co‐movement of consumption and hours worked occurs if and only if either consumption or leisure is inferior.

Date: 2009
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https://doi.org/10.1111/j.1538-4616.2009.00213.x

Related works:
Journal Article: Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods (2009)
Working Paper: Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods (2009)
Working Paper: Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods (2009)
Working Paper: Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:41:y:2009:i:2-3:p:443-450

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