EconPapers    
Economics at your fingertips  
 

Government Purchases and Real Interest Rates

N. Gregory Mankiw ()

Scholarly Articles from Harvard University Department of Economics

Abstract: This paper examines the dynamic impact of government purchases in a simple general equilibrium model with both durable and non-durable 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.

Date: 1987
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29) Track citations by RSS feed

Published in Journal of Political Economy

Downloads: (external link)
http://dash.harvard.edu/bitstream/handle/1/2624457 ... ernmentPurchases.pdf (application/pdf)

Related works:
Journal Article: 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:hrv:faseco:2624457

Access Statistics for this paper

More papers in Scholarly Articles from Harvard University Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Office for Scholarly Communication ().

 
Page updated 2019-06-26
Handle: RePEc:hrv:faseco:2624457