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Consumption and Government-Budget Finance in a High-Deficit Economy

Author: Assaf Razin; Leonardo Leiderman; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 1986.
Series: Working paper series (National Bureau of Economic Research), no. w2032.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
This paper characterizes empirically how government budget variables, such as spending, taxes, and deficits, affected private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops and estimates an intertemporal optimizing model of consumption choice by finite-lived individuals. The evidence supports this formulation against the Ricardian  Read more...
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Additional Physical Format: Print version:
Leiderman, Leonardo, 1950-
Consumption and government-budget finance in a high-deficit economy.
Cambridge (1050 Massachusetts Avenue, Cambridge, Mass. 02138) : National Bureau of Economic Research, 1986
(OCoLC)14762579
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Assaf Razin; Leonardo Leiderman; National Bureau of Economic Research.
OCLC Number: 756572705
Description: 1 online resource.
Series Title: Working paper series (National Bureau of Economic Research), no. w2032.
Responsibility: Leonardo Leiderman, Assaf Razin.

Abstract:

This paper characterizes empirically how government budget variables, such as spending, taxes, and deficits, affected private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops and estimates an intertemporal optimizing model of consumption choice by finite-lived individuals. The evidence supports this formulation against the Ricardian infinite-horizon case, but it does not support it when compared to the unrestricted relations in the data.

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