Ercolani, Valerio; Pavoni, Nicola - C.E.P.R. Discussion Papers - 2014
of precautionary saving, with public health care acting as a form of consumption insurance. We compute the implied … our model, with flexible prices. The impact consumption multiplier generated by the decrease in the level of precautionary … saving is positive and sizable. When we include the effect of taxation, the sign of the impact multiplier depends on a few …