Public Spending Management and Macroeconomic Interdependence /

This paper studies, in the context of a New Open Economy Macroeconomics (NOEM) model, the effects of "public competition policies" aimed at improving the efficiency of public spending. Such measures are modeled as an increase in the price elasticity of public consumption. The paper finds t...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Ganelli, Giovanni
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2004.
سلاسل:IMF Working Papers; Working Paper ; No. 2004/102
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper studies, in the context of a New Open Economy Macroeconomics (NOEM) model, the effects of "public competition policies" aimed at improving the efficiency of public spending. Such measures are modeled as an increase in the price elasticity of public consumption. The paper finds that public competition policies significantly affect macroeconomic interdependence across countries. Following a domestic fiscal expansion, an higher public price elasticity increases the substitutability between goods purchased by the domestic and the foreign governments. The same exchange rate variation can therefore sustain larger shifts in relative demand for goods. The expenditure-switching effect is magnified, implying a larger change in relative output. In welfare terms, countries with a larger government sector have an incentive to promote public competition policies.
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وصف مادي:1 online resource (22 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students