THE CHANGING STRUCTURE OF GOVERNMENT CONSUMPTION SPENDING

• 成果类型: Article
• 署名作者: Moro, Alessio; Rachedi, Omar
• 署名单位: University of Cagliari; Universitat Ramon Llull; Escuela Superior de Administracion y Direccion de Empresas (ESADE)
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12568
• 发表日期: 2022
• 页码: 1293-1323
• 关键词: fiscal-policy; EMPLOYMENT; transmission; multipliers; preferences; GROWTH; prices; shocks; FIRMS; MODEL

摘要

We document a secular change in the structure of government consumption spending: Over time the government purchases relatively more private-sector goods, and relies less on its own production of value added. This process alters the transmission of fiscal policy, by dampening the response of hours, public value added, and the labor share to government spending shocks, while leaving the response of total output unchanged. We rationalize these facts in a general equilibrium model where a decline of the public-sector relative productivity drives the changing structure of government spending, which in turn modifies the transmission mechanism of government spending shocks.