Housework and fiscal expansions
Gnocchi, Stefano (Bank of Canada)
Hauser, Daniela Stefanie (Bank of Canada)
Pappa, Evi (Universitat Autònoma de Barcelona)

Publicación:	Otawa : Bank of Canada, 2014
Descripción:	40 pag.
Resumen:	We build an otherwise-standard business cycle model with housework, calibrated consistently with data on time use, in order to discipline consumption-hours complementarity and relate its strength to the size of fiscal multipliers. We show that if substitutability between home and market goods is calibrated on the empirically relevant range, consumption-hours complementarity is large and the model generates fiscal multipliers that agree with the evidence. Hence, our analysis supports the relevance of consumption-hours complementarity for fiscal multipliers. However, we also find that explicitly modeling the home sector is more appealing than restricting to the consumption-leisure margin and/or to the preferences proposed by Greenwood, Hercowitz and Huffman (1988). A housework model can imply substantial complementarity, without low wealth effects contradicting the microeconomic evidence.
Ayudas:	Ministerio de Ciencia e Innovación ECO2009-09847
Derechos:	Aquest material està protegit per drets d'autor i/o drets afins. Podeu utilitzar aquest material en funció del que permet la legislació de drets d'autor i drets afins d'aplicació al vostre cas. Per a d'altres usos heu d'obtenir permís del(s) titular(s) de drets.
Lengua:	Anglès
Colección:	Bank of Canada Working Paper 2014-34
Documento:	Working paper
Materia:	Fiscal policy ; Business fluctuations and cycles
Publicado en:	Staff Working Papers, 34 (2014) , ISSN 1701-9397

Adreça alternativa: https://hdl.handle.net/10419/103020

40 p, 541.1 KB

El registro aparece en las colecciones:
Documentos de investigación > Working papers