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- W1569731547 abstract "This paper explores on a yearly panel of nineteen OECD countries from 1970-2001 the effects of fiscal policy on private consumption in recessions and expansions. In the presence of binding liquidity constraints on households, fiscal policy is more e¤ective in boosting private consumption in recessions than in expansions. The effect is more pronounced in countries characterized by a less developed consumer credit market. This happens because the fraction of individuals that face binding liquidity constraints in a recession will consume the extra income generated following a tax cut or government spending increase." @default.
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- W1569731547 date "2004-01-01" @default.
- W1569731547 modified "2023-09-27" @default.
- W1569731547 title "The Asymmetric Effects of Fiscal Policy onPrivate Consumption over the Business Cycle" @default.
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