The Effects of Government Spending Shocks on Consumption under
... consumption is important for understanding the e¤ects of …scal policy on people’s welfare. Private consumption is the largest component of aggregate demand and is also assumed to be a principal determinant of agents’welfare. Economic theory has yet to come up with a general guidance regarding the dy ...
... consumption is important for understanding the e¤ects of …scal policy on people’s welfare. Private consumption is the largest component of aggregate demand and is also assumed to be a principal determinant of agents’welfare. Economic theory has yet to come up with a general guidance regarding the dy ...
2015 Spring - 421 Notes 03
... Suppose you are told to find y when x = −1. You substitute for x and find that y = 1. ...
... Suppose you are told to find y when x = −1. You substitute for x and find that y = 1. ...
Heterogeneous Agents, Financial Constraints and Government Debt
... debt rose by about 75% for some epicentre countries (such as the United States, United Kingdom, Spain, Ireland and Iceland) with systemic financial risks much prone to crisis, and by about 20% for countries with lesser influence of the crisis (Reinhart and Rogoff, 2010). This has been attributed to ...
... debt rose by about 75% for some epicentre countries (such as the United States, United Kingdom, Spain, Ireland and Iceland) with systemic financial risks much prone to crisis, and by about 20% for countries with lesser influence of the crisis (Reinhart and Rogoff, 2010). This has been attributed to ...
“The text was adapted by The Saylor Foundation under the CC BY
... In the third quarter of 2008, foreign buyers purchased $1,971.3 billion worth of goods and serv ices from the United States. In the same y ear, U.S. residents, firms, and government agencies purchased $2,677.9 billion worth of goods and services from foreign countries. The difference between these t ...
... In the third quarter of 2008, foreign buyers purchased $1,971.3 billion worth of goods and serv ices from the United States. In the same y ear, U.S. residents, firms, and government agencies purchased $2,677.9 billion worth of goods and services from foreign countries. The difference between these t ...
Crisis and Consumption Smoothing
... etc., due to their high dependence on exports relative to domestic consumption), extent of debt (i.e., more indebted implying greater impact in Eastern European countries) and so on. In short, there is an abundance of ad-hoc explanations for the observed patterns of impact of the crisis but a seriou ...
... etc., due to their high dependence on exports relative to domestic consumption), extent of debt (i.e., more indebted implying greater impact in Eastern European countries) and so on. In short, there is an abundance of ad-hoc explanations for the observed patterns of impact of the crisis but a seriou ...
NBER WORKING PAPER SERIES AND THE REAL EXCHANGE RATE
... the fourth quarter of 2005. Our choice of countries is guided by our desire to limit attention to industrialized countries, and by the availability of reliable quarterly data on aggregate private consumption of nondurable goods and services and public consumption. We place emphasis on the availabili ...
... the fourth quarter of 2005. Our choice of countries is guided by our desire to limit attention to industrialized countries, and by the availability of reliable quarterly data on aggregate private consumption of nondurable goods and services and public consumption. We place emphasis on the availabili ...
NBER WORKING PAPER SERIES INTERNATIONAL TRADE IN DURABLE GOODS:
... But when the same elasticity is estimated from relative price fluctuations at the business cycle frequency, the estimate is much smaller–even less than one (for instance, Bergin, 2006, Heathcote and Perri, 2002.) Several studies have offered explanations for this puzzle, and ours is closely related ...
... But when the same elasticity is estimated from relative price fluctuations at the business cycle frequency, the estimate is much smaller–even less than one (for instance, Bergin, 2006, Heathcote and Perri, 2002.) Several studies have offered explanations for this puzzle, and ours is closely related ...
Explaining the Effects of Government Spending Shocks
... information to show that government spending is predetermined relative to other macroeconomic variables and does not respond contemporaneously to output, consumption etc. in quarterly data. This identification scheme is implemented by ordering government spending first in a VAR and using a Choleski de ...
... information to show that government spending is predetermined relative to other macroeconomic variables and does not respond contemporaneously to output, consumption etc. in quarterly data. This identification scheme is implemented by ordering government spending first in a VAR and using a Choleski de ...
Civics Chapter 19
... without necessarily raising GDP, such as a reduction of crime, greater equality of opportunity, and reduction of drug and alcohol abuse. Also, GDP does not reflect improvements in quality of products. GDP is only one of many factors that contribute to raising the standard of living. (pages 426–427) ...
... without necessarily raising GDP, such as a reduction of crime, greater equality of opportunity, and reduction of drug and alcohol abuse. Also, GDP does not reflect improvements in quality of products. GDP is only one of many factors that contribute to raising the standard of living. (pages 426–427) ...
ECON 2106 Principles of Microeconomics Assignment #4 (Chapter 6)
... d. the market demand for the good. ____ 2. Economists assume that tastes and preferences of individuals are: a. unchanged during one's life. b. given and are relatively stable. c. constantly in flux. d. determined by product prices. ____ 3. Which of the following best describes the economic concept ...
... d. the market demand for the good. ____ 2. Economists assume that tastes and preferences of individuals are: a. unchanged during one's life. b. given and are relatively stable. c. constantly in flux. d. determined by product prices. ____ 3. Which of the following best describes the economic concept ...
1 - Whitman People
... the future. A reduction in income will cause individuals to reduce consumption. A reduction in wealth (assets minus liabilities) will also cause a reduction in consumption. An increase in the interest rate, by raising the cost of borrowing will cause a reduction in consumption. And finally, if indiv ...
... the future. A reduction in income will cause individuals to reduce consumption. A reduction in wealth (assets minus liabilities) will also cause a reduction in consumption. An increase in the interest rate, by raising the cost of borrowing will cause a reduction in consumption. And finally, if indiv ...
NBER WORKING PAPER SERIES THE MACROECONOMICS OF SUBSISTENCE POINTS Morten O. Ravn
... There is a long literature in microeconomics, going back to the seminal work of Stone (1950) and Geary (1954), studying the role of non-homothetic preferences for the specification of demand functions. The existence of subsistence points also has macroeconomic implications. In particular, subsistenc ...
... There is a long literature in microeconomics, going back to the seminal work of Stone (1950) and Geary (1954), studying the role of non-homothetic preferences for the specification of demand functions. The existence of subsistence points also has macroeconomic implications. In particular, subsistenc ...
CHAPTER 25
... machines, etc). • However, firms have less control over inventory investment. • Remember, inventories are part of the capital stock. Manufacturing firms have two kind of inventories: – Inputs (e.g. tyres, rolled steel, engine blocks, etc) – Final production (finished automobiles awaiting shipment) ...
... machines, etc). • However, firms have less control over inventory investment. • Remember, inventories are part of the capital stock. Manufacturing firms have two kind of inventories: – Inputs (e.g. tyres, rolled steel, engine blocks, etc) – Final production (finished automobiles awaiting shipment) ...
Income and Expenditure
... • Autonomous consumption. Students can have difficulty understanding the notion of autonomous consumer spending. In particular, students often question how consumer spending can be positive even when income is zero. Emphasize to students that when disposable income is zero, consumers are financing t ...
... • Autonomous consumption. Students can have difficulty understanding the notion of autonomous consumer spending. In particular, students often question how consumer spending can be positive even when income is zero. Emphasize to students that when disposable income is zero, consumers are financing t ...
Intermediate Goods and Weak Links in the Theory of Economic
... based on this same multiplier. More specifically, this concern is addressed directly below by building a model in which distortions to the allocation of resources at the micro level such as theft or taxation aggregate up into TFP differences at the macro level. These micro-level distortions — which ...
... based on this same multiplier. More specifically, this concern is addressed directly below by building a model in which distortions to the allocation of resources at the micro level such as theft or taxation aggregate up into TFP differences at the macro level. These micro-level distortions — which ...
Slide
... c. When households form positive expectations about the future. d. None of the above. In all of the cases above, aggregate consumption will rise. ...
... c. When households form positive expectations about the future. d. None of the above. In all of the cases above, aggregate consumption will rise. ...
Diagnostic mission TSA
... 1. Accommodation services for visitors 1.a. Accommodation services for visitors other then 1b 1.b. Accommodation services associated with all types of vacation home ownership 2. Food- and beverage-serving services 3. Railway passenger transport services not relevant 4. Road passenger transport servi ...
... 1. Accommodation services for visitors 1.a. Accommodation services for visitors other then 1b 1.b. Accommodation services associated with all types of vacation home ownership 2. Food- and beverage-serving services 3. Railway passenger transport services not relevant 4. Road passenger transport servi ...
1999 South-Western College Publishing
... What was Keynes central idea? An economy can be in equilibrium at less than full employment. ©1999 South-Western College Publishing ...
... What was Keynes central idea? An economy can be in equilibrium at less than full employment. ©1999 South-Western College Publishing ...
International Risk Sharing and the Irish Economy Agustín S. Bénétrix IIIS
... Ireland is country very much integrated with the international financial system. As such, it provides a unique case of study to understand the effects of international financial integration. Theory suggests that highly integrated economies can benefit along three main dimensions. First, internationa ...
... Ireland is country very much integrated with the international financial system. As such, it provides a unique case of study to understand the effects of international financial integration. Theory suggests that highly integrated economies can benefit along three main dimensions. First, internationa ...
Understanding Non-Inflationary Demand Driven Business Cycles
... The remaining element needed to calculate our predicted inflation series is the autoregressive parameter for the output gap, which we estimate to be 0.85 from our HP filtered GDP series over the period 1947-2012. In Table 4 we report the volatility of the resulting predicted inflation as well as its ...
... The remaining element needed to calculate our predicted inflation series is the autoregressive parameter for the output gap, which we estimate to be 0.85 from our HP filtered GDP series over the period 1947-2012. In Table 4 we report the volatility of the resulting predicted inflation as well as its ...
NBER WORKING PAPER SERIES RATIONAL ADDICTION, PEER EXTERNALITIES Donald S. Kenkel
... in the economy is lower. The reduction in total savings occurs because individuals obtain less utility from old-age consumption.7 We proceed to studying the long-run effects of an excise tax on addictive goods. We note that there are a number of important reasons for taxation of addictive consumptio ...
... in the economy is lower. The reduction in total savings occurs because individuals obtain less utility from old-age consumption.7 We proceed to studying the long-run effects of an excise tax on addictive goods. We note that there are a number of important reasons for taxation of addictive consumptio ...
the role of household consumption
... as the Euro area average (2.2%) and less than half of all of the other larger OECD countries—Korea (5.3%), Australia (3.8%), Spain (3.3%), the Netherlands (2.9%), and Mexico (2.6%)--as well as the OECD-wide average (2.7%). Figure 1 shows trends over time in the annual growth rate of real GDP and hou ...
... as the Euro area average (2.2%) and less than half of all of the other larger OECD countries—Korea (5.3%), Australia (3.8%), Spain (3.3%), the Netherlands (2.9%), and Mexico (2.6%)--as well as the OECD-wide average (2.7%). Figure 1 shows trends over time in the annual growth rate of real GDP and hou ...
NBER WORKING PAPER SERIES THE CAUSES OF JAPAN’S ‘LOST DECADE’:
... less than half of all of the other larger OECD countries—Korea (5.3%), Australia (3.8%), Spain (3.3%), the Netherlands (2.9%), and Mexico (2.6%)--as well as the OECD-wide average (2.7%). Figure 1 shows trends over time in the annual growth rate of real GDP and household consumption during the 1980-2 ...
... less than half of all of the other larger OECD countries—Korea (5.3%), Australia (3.8%), Spain (3.3%), the Netherlands (2.9%), and Mexico (2.6%)--as well as the OECD-wide average (2.7%). Figure 1 shows trends over time in the annual growth rate of real GDP and household consumption during the 1980-2 ...
lost decade
... less than half of all of the other larger OECD countries—Korea (5.3%), Australia (3.8%), Spain (3.3%), the Netherlands (2.9%), and Mexico (2.6%)--as well as the OECD-wide average (2.7%). Figure 1 shows trends over time in the annual growth rate of real GDP and household consumption during the 1980-2 ...
... less than half of all of the other larger OECD countries—Korea (5.3%), Australia (3.8%), Spain (3.3%), the Netherlands (2.9%), and Mexico (2.6%)--as well as the OECD-wide average (2.7%). Figure 1 shows trends over time in the annual growth rate of real GDP and household consumption during the 1980-2 ...
Consumerism
Consumerism as a social and economic order and ideology encourages the acquisition of goods and services in ever-increasing amounts. Early criticisms of consumerism occur in 1899 in the works of Thorstein Veblen. Veblen's subject of examination, the newly emergent middle class arising at the turn of the twentieth century,came to fruition by the end of the twentieth century through the process of globalization.In the domain of politics, the term ""consumerism"" has also been used to refer to something quite different called the consumerists' movement, consumer protection or consumer activism, which seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards. In this sense it is a political movement or a set of policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer.In the domain of economics, ""consumerism"" refers to economic policies placing emphasis on consumption. In an abstract sense, it is the consideration that the free choice of consumers should strongly orient the choice by manufacturers of what is produced and how, and therefore orient the economic organization of a society (compare producerism, especially in the British sense of the term). In this sense, consumerism expresses the idea not of ""one man, one voice"", but of ""one dollar, one voice"", which may or may not reflect the contribution of people to society.Overall, since the end of the twentieth century, the burgeoning of consumerism as a way of life across all domains has remade politics, economics and culture: