Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods

Details

Serval ID
serval:BIB_5638C71E8A16
Type
Article: article from journal or magazin.
Collection
Publications
Title
Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods
Journal
Journal of Money, Credit and Banking
Author(s)
BILBIIE F.O.
ISSN
0022-2879
1538-4616
Publication state
Published
Issued date
03/2009
Peer-reviewed
Oui
Volume
41
Number
2-3
Pages
443-450
Language
english
Abstract
Nonseparable preferences over consumption and leisure can generate an increase in private consumption in response to government spending, as found in the data, in a frictionless business cycle model. However, the conditions on preferences required for these result to obtain hold if and only if the consumption good is inferior. Similarly, positive co‐movement of consumption and hours worked occurs if and only if either consumption or leisure is inferior.
Keywords
non-separable preferences, fiscal policy, government spend- ing, private consumption, inferior goods.
Web of science
Create date
01/11/2018 9:57
Last modification date
20/08/2019 15:10
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