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dc.contributor.authorMatsen, Egil
dc.contributor.authorSveen, Tommy
dc.contributor.authorTorvik, Ragnar
dc.date.accessioned2018-05-18T10:07:37Z
dc.date.available2018-05-18T10:07:37Z
dc.date.issued2004
dc.identifier.isbn82-7553-274-4
dc.identifier.isbn82-7553-275-2
dc.identifier.issn0801-2504
dc.identifier.issn1502-8143
dc.identifier.urihttp://hdl.handle.net/11250/2498537
dc.description.abstractThis paper analyzes the effects of fiscal policy in an open economy. We extend the savers-spenders theory of Mankiw (2000) to a small open economy with endogenous labor supply. We first show how the Dornbusch (1983) consumption-based real interest rate for open economies is modified when labor supply is endogenous. We then turn to the effects of fiscal policy when there are both savers and spenders. With this heterogeneity taken into account, tax cuts have a short-run contractionary effect on domestic production, and increased public spending has a short-run expansionary effect. Although consistent with recent empirical work, this result contrasts with those of most other theoretical models. Transitory changes in demand have permanent real effects in our model, and we discuss the implications for real exchange-rate dynamics. We also show how rational savers may magnify or dampen the responses of "irrational" spenders, and show how this is related to features of the utility functions.nb_NO
dc.language.isoengnb_NO
dc.publisherNorges Banknb_NO
dc.relation.ispartofseriesWorking Papers;18/2004
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internasjonal*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/deed.no*
dc.subjectJEL: E21nb_NO
dc.subjectJEL: E62nb_NO
dc.subjectJEL: F41nb_NO
dc.subjectrule-of-thumb consumersnb_NO
dc.subjectfiscal policynb_NO
dc.subjectopen economynb_NO
dc.titleSavers, Spenders and Fiscal Policy in a Small Open Economynb_NO
dc.typeWorking papernb_NO
dc.description.versionpublishedVersionnb_NO
dc.subject.nsiVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212nb_NO
dc.source.pagenumber31nb_NO


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Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal