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Public Finance in Models of Economic Growth

Barro, Robert J. - 1990

The recent literature on endogenous economic growth allows for effects of fiscal policy on long-term growth. If the social rate of return on investment exceeds the private return, then tax policies that encourage investment can raise the growth rate and levels of utility. An excess of the social...

Persistent link: https://www.econbiz.de/10012475671

Output Effects of Government Purchases

Barro, Robert J. - 1980

Because of a small direct negative effect on private spending, temporary variations in government purchases as in wartime, would have a strong positive effect on aggregate demand. Intertemporal substitution effects would direct work and production toward these periods where output was valued...

Persistent link: https://www.econbiz.de/10012478713

Unanticipated Money and Economic Activity

Barro, Robert J. - 1979

joint, cross-equation estimation and testing of the money growth, unemployment, output and price level equations. The … correlation of residuals in the equations for unemployment, output and the price level, the main results are consistent with those … obtained from annual data. Further, the quarterly estimates allow a detailed description of the lagged response of unemployment …

Persistent link: https://www.econbiz.de/10012478809

Double-Counting of Investment

Barro, Robert J. - 2019

The national-income accounts double-count investment, which enters once when it occurs and again in present value as rental income on added capital. The double-counting implies over-statement of levels of GDP and national income. Across countries, those with higher propensities to invest...

Persistent link: https://www.econbiz.de/10012479775

Rare Disasters, Asset Prices, and Welfare Costs

Barro, Robert J. - 2007

A representative-consumer model with Epstein-Zin-Weil preferences and i.i.d. shocks, including rare disasters, accords with key asset-pricing observations. If the coefficient of relative risk aversion equals 3-4, the model accords with observed equity premia and risk-free real interest rates. If...

Persistent link: https://www.econbiz.de/10012464956

Convergence and Modernization Revisited

Barro, Robert J. - 2012

In an 80-country panel since the 1960s, the convergence rate for per capita GDP is around 1.7% per year. This "beta convergence" is conditional on an array of explanatory variables that hold constant countries' long-run characteristics. The introduction of country fixed effects generates a much...

Persistent link: https://www.econbiz.de/10012460366

Rare Macroeconomic Disasters

Barro, Robert J. - 2011

The potential for rare macroeconomic disasters may explain an array of asset-pricing puzzles. Our empirical studies of these extreme events rely on long-term data now covering 28 countries for consumption and 40 for GDP. A baseline model calibrated with observed peak-to-trough disaster sizes...

Persistent link: https://www.econbiz.de/10012461330

Time-Separable Preference and Intertemporal-Substitution Models of Business Cycles

Barro, Robert J. - 1982

Time-separability of utility means that past work and consumption do not influence current and future tastes. This form of preferences does not restrict the size of intertemporal-substitution effects--notably, we can still have a strong response of labor supply to temporary changes in wages....

Persistent link: https://www.econbiz.de/10012478220

Intertemporal Substitution and the Business Cycle

Barro, Robert J. - 1980

This paper summarizes the theoretical role of intertemporal substitution variables in the "new classical macroeconomics." An important implication is that positive monetary shocks tend to raise expected real returns that are calculated from the usual partial information set, but tend to lower...

Persistent link: https://www.econbiz.de/10012478646

The Coronavirus and the Great Influenza Pandemic : Lessons from the “Spanish Flu” for the Coronavirus’s Potential Effects on Mortality and Economic Activity

Barro, Robert J. - 2020

Mortality and economic contraction during the 1918-1920 Great Influenza Pandemic provide plausible upper bounds for outcomes under the coronavirus (COVID-19). Data for 48 countries imply flu-related deaths in 1918-1920 of 40 million, 2.1 percent of world population, implying 150 million deaths...

Persistent link: https://www.econbiz.de/10012482047