Output Effects of Government Purchases

DSpace/Manakin Repository

Output Effects of Government Purchases

Citable link to this page

. . . . . .

Title: Output Effects of Government Purchases
Author: Barro, Robert J.
Citation: Barro, Robert J. 1981. Output effects of government purchases. Journal of Political Economy 89(6): 1086-1121.
Full Text & Related Files:
Abstract: The theoretical analysis focuses on the distinction between temporary and permanent movements in government purchases. Under plausible conditions, the temporary case involves an output response that is positive, less than one-to-one with the change in government purchases, and larger than that generated by an equal-sized, but permanent, shift in purchases. The equilibrium real rate of return rises in the temporary case, but changes little in the permanent one. Defense purchases are divided empirically into "permanent" and "temporary" components by considering the role of (temporary) wars. No temporary shifts in nondefense purchases were isolated. Empirical results verify an expansionary output effect for temporary purchases that exceeds that of permanent purchases. The results for some other expectational hypotheses are found to be generally sup- portive of the theory.
Published Version: doi:10.1086/261024
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:3451294

Show full Dublin Core record

This item appears in the following Collection(s)

  • FAS Scholarly Articles [6948]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
 
 

Search DASH


Advanced Search
 
 

Submitters