The Intergenerational Incidence of Government Spending.
This paper analyzes the effect of an increase in government spending on the welfare of different generations in a dynamic general equilibrium model. The paper shows that the intergenerational incidence of government spending on a public good is determined not only by the welfare effects due to the public good and to financing the good but also by a welfare effect due to intertemporal substitution between private consumption when government spending is increased. The degree of substitutability between private consumption and public spending is shown to be a key determinant of this incident. Copyright 1995 by The Economic Society of Australia.
Year of publication: |
1995
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Authors: | Tan, Kim-Heng |
Published in: |
The Economic Record. - Economic Society of Australia - ESA, ISSN 1475-4932. - Vol. 71.1995, 212, p. 54-65
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Publisher: |
Economic Society of Australia - ESA |
Saved in:
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