| Description |
1 online resource (18 pages) : illustrations |
| Series |
IMF working paper, 2227-8885 ; WP/05/4 |
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IMF working paper ; WP/05/4.
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| Contents |
Contents -- I. INTRODUCTION -- II. THE MODEL -- III. THE EFFECTS OF GOVERNMENT SPENDING COMPOSITION -- IV. CONCLUSIONS -- REFERENCES |
| Summary |
This paper helps resolve a paradox in the literature, noticed by Alesina and Perotti (1995), which is that, although government employment is an important component of public spending, the debate on the effects of fiscal policy focuses almost exclusively on shocks to non-wage government consumption. We incorporate the distinction between spending for government employment and spending for non-wage government consumption in a "new open economy macroeconomics" model. Our results show that a permanent reduction in public employment in one country reduces relative private consumption and appreciates the domestic exchange rate if it is matched by a reduction in taxes. When the reduction in public employment is used to finance increased non-wage government consumption, the macroeconomic effects results are ambiguous, and are affected by the initial level of the public wage bill |
| Bibliography |
Includes bibliographical references (page 18) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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English |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Government spending policy -- Econometric models
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Civil service -- Econometric models
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Fiscal policy -- Econometric models
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Civil service.
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Civil service
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Fiscal policy -- Econometric models
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Government spending policy -- Econometric models
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| Form |
Electronic book
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| Author |
International Monetary Fund. Fiscal Affairs Department, issuing body.
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| ISBN |
128204432X |
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9781282044326 |
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9781451905595 |
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1451905599 |
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1462339751 |
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9781462339754 |
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1452781451 |
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9781452781457 |
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9786613797469 |
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6613797464 |
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