Consumption, government spending, and the real exchange rate

Journal of Monetary Economics

Volumn 59, Issue 3, 2012, Pages 215-234

  Ravn, Morten O ^a,b   Schmitt Grohé, Stephanie ^b,c,d   Uribe, Martín ^c,d  

^a UNIVERSITY COLLEGE LONDON   (United Kingdom)

^b CEPR   (United Kingdom)

^c Och Spine at New York Presbyterian Hospitals   (United States)

^d NATIONAL BUREAU OF ECONOMIC RESEARCH   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84859994411     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2012.02.001     Document Type: Article

References (21)

1. Backus D., Kehoe P., Kydland F. International real business cycles. Journal of Political Economy 1992, 100:745-775.
2. Blanchard O., Perotti R. An empirical characterization of the dynamic effects of changes in government spending and taxes on output. Quarterly Journal of Economics 2002, 117:1329-1368.
3. Campbell J., Cochrane J. By force of habit: a consumption-based explanation of aggregate stock market behavior. Journal of Political Economy 1999, 107:205-251.
4. Corsetti G., Müller G. Twin deficits: squaring theory, evidence and common sense. Economic Policy 2006, 100:599-638.
5. Erceg C., Guerrieri L., Gust C. Expansionary fiscal shocks and the U.S. trade deficit. International Finance 2005, 8:363-397.
6. Fatás, A., Mihov, I., 2001. The effects of fiscal policy on consumption and employment: theory and evidence. Insead, manuscript.
7. Froot K., Klemperer P. Exchange rate pass-through when market share matters. American Economic Review 1989, 79:637-654.
8. Galí J., López-Salido D., Vallés J. Understanding the effects of government spending on consumption. Journal of the European Economic Association 2007, 5:227-270.
9. Kim S., Roubini N. Twin deficit or twin divergence? Fiscal policy, current account, are real exchange rate in the U.S. Journal of International Economics 2008, 74:362-383.
10. Monacelli, T., Perotti, R., 2006. Fiscal policy, the trade balance, and the real exchange rate: implications for international risk sharing. IGIER, Università Bocconi.
11. Monacelli, T., Perotti, R., 2008. Fiscal Policy, Wealth Effects, and Markups. NBER Working Paper 14584.
12. Nickell S. Biases in dynamic models with fixed effects. Econometrica 1981, 49:1417-1426.
13. Perotti, R., 2004. Estimating the effects of fiscal policy in OECD countries. IGIER, Università Bocconi, manuscript.
14. Perotti R. In search of the transmission mechanism for fiscal policy. NBER Macroeconomics Annual 2007 2008, 169-226. The University of Chicago Press, Chicago. D. Acemoglu, K. Rogoff, M.D. Woodford (Eds.).
15. Phelps E., Winter S. Optimal price policy under atomistic competition. Microeconomic Foundations of Employment and Inflation Theory 1970, 309-337. W.W. Norton, New York. E. Phelps (Ed.).
16. Ravn M., Schmitt-Grohé S., Uribe M. Deep habits. Review of Economic Studies 2006, 73:195-218.
17. Ravn, M., Schmitt-Grohé, S., Uribe, M., 2007. Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate. NBER working paper 13328.
18. Ravn, M., Schmitt-Grohé, S., Uribe, M., 2011. Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate: Supplementary Materials, Columbia University.
19. Rotemberg J., Woodford M. Oligopolistic pricing and the effects of aggregate demand on economic activity. The Journal of Political Economy 1992, 100:1153-1207.
20. Schmitt-Grohé S., Uribe M. Solving dynamic general equilibrium models using a second-order approximation to the policy function. Journal of Economic Dynamics and Control 2004, 28:755-775.
21. Sims C. Macroeconomics and reality. Econometrica 1980, 48:1-48.