An empirical analysis on the substitutability between private consumption and government purchases

• 成果类型: Article
• 署名作者: Ni, S
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(95)01233-8
• 发表日期: 1995
• 页码: 593-605
• 关键词: consumption; government purchases; GMM estimation

摘要

This paper estimates substitutability of government purchases for private consumption using an optimal consumption model. The utility function features several types of nonseparabilities. The paper finds that GMM estimates are affected by the specification of nonseparability between private consumption and government purchases, by the restriction of time-separability, and by the measurement of real interest rates.