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• W2044095544 abstract "In this paper, we revisit the effects of government spending shocks on private consumption within an estimated New-Keynesian DSGE model of the euro area featuring non-Ricardian households. Employing Bayesian inference methods, we show that the presence of non-Ricardian households is in general conducive to raising the level of consumption in response to government spending shocks when compared with the benchmark specification without non-Ricardian households. However, we find that there is only a fairly small chance that government spending shocks crowd in consumption, mainly because the estimated share of non-Ricardian households is relatively low, but also because of the large negative wealth effect induced by the highly persistent nature of government spending shocks." @default.
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• W2044095544 date "2005-01-01" @default.
• W2044095544 modified "2023-10-03" @default.
• W2044095544 title "Does Government Spending Crowd in Private Consumption?: Theory and Empirical Evidence for the Euro Area" @default.
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• W2044095544 doi "https://doi.org/10.2139/ssrn.888028" @default.
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