Bill Dupor;李竞超;李戎——JOURNAL OF MACROECONOMICS:Sticky Wages, Private Consumption, and Fiscal Multipliers
时间:2019-12-01
This paper demonstrates how adding nominal wage rigidity to a standard, closed economysticky pricemodel canby itselfcreate a mechanism by which increases in government spending cause increases in consumption. The increase in output arising from government purchases puts upward pressure on theprice level. At a fixed short-run nominal wage, this bids down thereal wage,which leads producers to increaselabor demand. Increasedlabor demandallows households to both finance the tax bill associated with