Corchon, Luis (2009): The Keynesian multiplier and the Pigou effect under substitution between private and public consumption.
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In this paper we present a fixprice model in which private and public consumption show some degree of substitution. We offer formulae for the Keynesian multiplier which depend on this degree of substitution. We also show that there is a Pigou effect and that, sometimes, this effect is larger than the Keynesian multiplier.
|Item Type:||MPRA Paper|
|Original Title:||The Keynesian multiplier and the Pigou effect under substitution between private and public consumption|
|English Title:||The Keynesian multiplier and the Pigou effect under substitution between private and public consumption|
|Keywords:||Disequilibrium Multiplier Pigou Effect|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes; Keynesian; Post-Keynesian
|Depositing User:||Luis C. Corchon|
|Date Deposited:||20. Nov 2009 14:29|
|Last Modified:||12. Feb 2013 21:34|
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