TY  - UNPD
A1  - Galí, Jordi
A1  - López-Salidoz, J. David
A1  - Vallés, Javier
T1  - Understanding the effects of government spending on consumption
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2004,23
N2  - Recent evidence on the effect of government spending shocks on consumption cannot be easily reconciled with existing optimizing business cycle models. We extend the standard New Keynesian model to allow for the presence of rule-of-thumb (non-Ricardian) consumers. We show how the interaction of the latter with sticky prices and deficit financing can account for the existing evidence on the effects of government spending. JEL Klassifikation: E32, E62.
T3  - CFS working paper series - 2004, 23 
KW  - Rule-of-Thumb Consumers
KW  - Fiscal Multiplier
KW  - Government Spending
KW  - Taylor Rules
KW  - Privater Verbrauch
KW  - Öffentliche Ausgaben
Y1  - 2004
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4415
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10746
N1  - First Draft: September 2002. This Draft: November 2003.
IS  - This Draft: November 2003
ER  -