UNEMPLOYMENT, PARTIAL INSURANCE, AND THE MULTIPLIER EFFECTS OF GOVERNMENT SPENDING

• 成果类型: Article
• 署名作者: Givens, Gregory E.
• 署名单位: University of Alabama System; University of Alabama Tuscaloosa
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12560
• 发表日期: 2022
• 页码: 571-599
• 关键词: consumption smoothing benefits; labor-market dynamics; fiscal-policy; business-cycle; equilibrium unemployment; nonseparable preferences; private consumption; indivisible labor; interest-rates; job loss

摘要

I interpret evidence on government spending multipliers using a model in which workers are not fully insured against job loss. Government consumption affects aggregate spending along two margins : (i) an intensive margin owing to a fall in household wealth and (ii) an extensive margin that accounts for growth in the workforce. At insurance levels below a certain threshold, the positive effects of (ii) dominate the negative effects of (i), leading to multipliers for private consumption and output that exceed zero and one. Similar results appear in a quantitative model scaled to match microestimates on the consumption cost of unemployment.