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Journal articles
Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods
Abstract : Nonseparable preferences over consumption and leisure can generate an increase in private consumption in response to government spending, as found in the data, in a frictionless business cycle model. However, the conditions on preferences required for these result to obtain hold if and only if the consumption good is inferior. Similarly, positive co-movement of consumption and hours worked occurs if and only if either consumption or leisure is inferior.
https://hal-paris1.archives-ouvertes.fr/hal-00622869
Contributor : Florin Bilbiie <>
Submitted on : Monday, September 12, 2011 - 10:05:13 PM
Last modification on : Tuesday, April 28, 2020 - 10:42:12 AM
Contributor : Florin Bilbiie <>
Submitted on : Monday, September 12, 2011 - 10:05:13 PM
Last modification on : Tuesday, April 28, 2020 - 10:42:12 AM
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