eprintid: 1911
rev_number: 7
eprint_status: archive
userid: 721
dir: disk0/00/00/19/11
datestamp: 2007-02-25
lastmod: 2019-09-29 00:07:24
status_changed: 2007-11-07 01:06:26
type: paper
metadata_visibility: show
abstract: In this paper we examine the welfare effects of government's preferences over consumption and investment spending under different methods of financing in a two-period OLG model. The government has a utility function defined over the decomposition of her spending over two periods and raises funds by issuing bonds and by printing money. She allocates her funds into consumption expenditure that benefits the current population and investment expenditure which benefits the future population. The model is calibrated using data on the U.S. economy for the period 1981-2004. The findings reveal that the government's choice of financing as well as composition of spending into consumption-investment have differing impacts on the welfare of the young and old generations.
creators_name: Alper, C. Emre
creators_name: Ardic, Oya Pinar
creators_name: Mumcu, Ayşe
creators_name: Saglam, Ismail
creators_id: 
creators_id: 
creators_id: mumcu@boun.edu.tr
creators_id: 
date: 2006-05
date_issue: 2006-05
date_revision: 2007-01
file_format: pdf
file_url: http://mpra.ub.uni-muenchen.de/1911/01/MPRA_paper_1911.pdf
full_text_status: public
identifierabstract: http://mpra.ub.uni-muenchen.de/1911/
institutions: Bogazici University
institution: Bogazici University
ispublished: unpub
keywords: Seigniorage; Bond financing; Composition of government spending; Overlapping generations
language: en
pages: 20
subjects: O42
subjects: E62
title: The welfare effects of government's preferences over spending and its financing
citation:   Alper, C. Emre and Ardic, Oya Pinar and Mumcu, Ayşe and Saglam, Ismail  (2006): The welfare effects of government's preferences over spending and its financing.    
document_url: https://mpra.ub.uni-muenchen.de/1911/1/MPRA_paper_1911.pdf