Private Sector Consumption and Government Consumption and Debt in Advanced Economies An Empirical Study /

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Bibliographic Details
Author / Creator:	Mukherjee, Sanchita.
Imprint:	Washington, D.C. : International Monetary Fund, 2010.
Description:	1 online resource (27 pages)
Language:	English
Series:	IMF Working Papers, 2227-8885 ; Working Paper No. 10/264 IMF Working Papers ; Working Paper no. 10/264.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12508076

Hidden Bibliographic Details
Other authors / contributors:	Mukherjee, Sanchita. Bhattacharya, Rina. International Monetary Fund.
ISBN:	1455211494 9781455211494 9781455210718 1455210714 9781455211494
Notes:	Available in PDF, ePUB, and Mobi formats on the Internet.
Summary:	This paper explores the hypothesis that the propensity to consume out of income varies in a non-linear fashion with fiscal variables, and in particular with government debt per capita. Using data from eighteen OECD countries the paper examines whether there is any empirical evidence to support the hypothesis that households move from non-Ricardian to Ricardian behavior as government debt reaches high levels and as uncertainty about future taxes increases. Our results provide support for this hypothesis, and also suggest that private and government consumption are substitutes in the household utility function.
Standard no.:	10.5089/9781455211494.001

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