04981oam 22012734 450 991095981810332120250426110414.0978661379746997814623397541462339751978145278145714527814519781282044326128204432X97814519055951451905599(CKB)3360000000442225(EBL)3012537(SSID)ssj0000940790(PQKBManifestationID)11528532(PQKBTitleCode)TC0000940790(PQKBWorkID)10955590(PQKB)10162568(OCoLC)535146937(MiAaPQ)EBC3012537(IMF)WPIEE2005004(IMF)WPIEA2005004WPIEA2005004(EXLCZ)99336000000044222520020129d2005 uf 0engur|n|---|||||txtccrThe International Effects of Government Spending Composition /Giovanni Ganelli1st ed.Washington, D.C. :International Monetary Fund,2005.1 online resource (19 p.)IMF Working Papers"January 2005."At head of title: Fiscal Affairs Department.9781451860238 1451860234 Includes bibliographical references (p. 18).""Contents""; ""I. INTRODUCTION""; ""II. THE MODEL""; ""III. THE EFFECTS OF GOVERNMENT SPENDING COMPOSITION""; ""IV. CONCLUSIONS""; ""REFERENCES""This paper helps resolve a paradox in the literature, noticed by Alesina and Perotti (1995), which is that, although government employment is an important component of public spending, the debate on the effects of fiscal policy focuses almost exclusively on shocks to non-wage government consumption. We incorporate the distinction between spending for government employment and spending for non-wage government consumption in a "new open economy macroeconomics" model. Our results show that a permanent reduction in public employment in one country reduces relative private consumption and appreciates the domestic exchange rate if it is matched by a reduction in taxes. When the reduction in public employment is used to finance increased non-wage government consumption, the macroeconomic effects results are ambiguous, and are affected by the initial level of the public wage bill.IMF Working Papers; Working Paper ;No. 2005/004Government spending policyEconometric modelsCivil serviceEconometric modelsFiscal policyEconometric modelsAggregate Human CapitalimfAggregate Labor ProductivityimfConsumptionimfEconomic theoryimfEconomicsimfEmploymentimfExpenditureimfExpenditures, PublicimfGovernment consumptionimfIncome economicsimfIntergenerational Income DistributionimfLaborimfLabourimfMacroeconomicsimfMacroeconomics: ConsumptionimfNational Government Expenditures and Related Policies: GeneralimfPrivate consumptionimfPublic employmentimfPublic finance & taxationimfPublic FinanceimfSavingimfUnemploymentimfWagesimfWealthimfGovernment spending policyEconometric models.Civil serviceEconometric models.Fiscal policyEconometric models.Aggregate Human CapitalAggregate Labor ProductivityConsumptionEconomic theoryEconomicsEmploymentExpenditureExpenditures, PublicGovernment consumptionIncome economicsIntergenerational Income DistributionLaborLabourMacroeconomicsMacroeconomics: ConsumptionNational Government Expenditures and Related Policies: GeneralPrivate consumptionPublic employmentPublic finance & taxationPublic FinanceSavingUnemploymentWagesWealthGanelli Giovanni1092052International Monetary Fund.Fiscal Affairs Dept.DcWaIMFBOOK9910959818103321The International Effects of Government Spending Composition4371754UNINA