working relatively few (weekly) hours, for instance, suffer from a spending shock of the type we analyzed: their consumption …

private consumption and the real wage will fall, while some neo-keyenesian models predict the opposite. This paper discusses …

We document that variations in government purchases generate a rise in consumption, the real and the product wage, and … effect is linked to the degree of complementarity between consumption and hours. We show that the model is able to match our … the positive wealth effect on labor supply is small and therefore the negative wealth effect on consumption is, somewhat …

consumption confirms that fiscal policy changes - both contractions and expansions - can have non-Keynesian effects if they are … sufficiently large and persistent, and suggests that these effects can result not only from changes in public consumption but to … decrease in net taxes (with almost no change in public consumption) was associated with a dramatic fall in private domestic …

, households will revise upwards their estimate of their permanent income, and will raise current and planned consumption. Only the …