Government Consumption

  • Burkhard Heer
Part of the Springer Texts in Business and Economics book series (STBE)


Empirically, government expenditures represent a large share of total demand and significantly affect output, employment, and welfare. In the introductory Sect. 4.2 of this chapter, we document some selected empirical facts of government consumption. In particular, we find that government consumption is procyclical, and after an unexpected increase in consumption, output, employment, and (to a smaller extent) private consumption all increase.


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© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Burkhard Heer
    • 1
  1. 1.Department of Business and EconomicsUniversity of AugsburgAugsburgGermany

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