التفاصيل البيبلوغرافية
| العنوان: |
Government Debt, Government Spending and Private Sector Behavior: Comment. |
| المؤلفون: |
Modigliani, Franco1, Sterling, Arlie2 |
| المصدر: |
American Economic Review. Dec86, Vol. 76 Issue 5, p1168. 20p. |
| مصطلحات موضوعية: |
*FISCAL policy, *PUBLIC debts, *PUBLIC spending, *PRIVATE sector, *ACCOUNTS payable, AUTOREGRESSION (Statistics) |
| People: |
KORMENDI, Roger |
| مستخلص: |
In this article, authors comment on economist Roger Kormendi's paper on government debt, government spending and private sector behavior. Kormendi gives strong evidence that, in contrast to the standard view, consumption is not reduced by taxes but is reduced by government expenditure. He interprets his results as supporting a "consolidated" approach to private sector behavior in which consumers effectively internalize the government budget constraints. Specifically, he claims that consumers regard government spending as the true measure of the government's claim on private resources, and so do not respond to changes in taxes, given spending. Kormendi's results appear to contradict other empirical work based on the Life Cycle Hypothesis. According to the author, a shortcoming of Kormendi's specification is that he fails to impose the consistency condition requiring that the coefficients of taxes expenditure and income add up to zero. A final and more consequential shortcoming is that he chooses to estimate coefficients in the first difference form, a rather arbitrary procedure since, when he estimated an autoregression coefficient, its value, though fairly high, is significantly below unity. |
| قاعدة البيانات: |
Business Source Index |