Fiscal policy, profits, and investment

• 成果类型: Article
• 署名作者: Alesina, A; Ardagna, S; Perotti, R; Schiantarelli, F
• 署名单位: Harvard University; National Bureau of Economic Research; Wellesley College; European University Institute; Centre for Economic Policy Research - UK; Boston College
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/00028280260136255
• 发表日期: 2002
• 页码: 571-589
• 关键词: aggregate demand; trade-unions; EMPLOYMENT; industrial; GROWTH; debt

摘要

This paper evaluates the effects of fiscal policy on investment using a panel of OECD countries. We find a sizeable negative effect of public spending-and in particular of its wage component-on profits and on business investment. This result is consistent with different theoretical models in which government employment creates wage pressure for the private sector. Various types of taxes also have negative effects on profits, but, interestingly, the effects of government spending on investment are larger than those of taxes. Our results can explain the so-called non-Keynesian (i.e., expansionary) effects of fiscal adjustments.