Abstract
We build a model of optimal time-consistent public spending in a dynamic general equilibrium model of the business cycle. We analyze the welfare properties of optimal public spending and characterize the optimal response of spending to exogenous economic shocks.
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© 1997 Springer Science+Business Media Dordrecht
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Ambler, S., Cardia, E. (1997). Optimal Public Spending in a Business Cycle Model. In: Hairault, JO., Hénin, PY., Portier, F. (eds) Business Cycles and Macroeconomic Stability. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6173-6_2
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DOI: https://doi.org/10.1007/978-1-4615-6173-6_2
Publisher Name: Springer, Boston, MA
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