Revisiting Aschauer via ICM estimation
- 주제(키워드) public spending , private consumption , integrated conditional moment , E21 , C18 , H31 , H50 , C51
- 등재 SSCI, SCOPUS
- 발행기관 ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
- 발행년도 2014
- 총서유형 Journal
- URI http://www.dcollection.net/handler/ewha/000000113074
- 본문언어 영어
- Published As http://dx.doi.org/10.1080/13504851.2014.912029
초록/요약
In this article, the effect of public expenditure on consumers' welfare is considered by estimating the substitutability of public expenditure for private consumption in the context of Aschauer (1985). Aschauer's full information maximum likelihood estimation requires much more assumptions than the equilibrium condition of his model. Therefore, this study proposes an alternative estimation approach under a weaker condition, which is equivalent to the equilibrium condition of the model. In particular, I propose to use an integrated conditional moments estimation and apply the proposed estimation to US economy. The estimation results show that Aschauer's model specification is not rejected at conventional significance levels, even though substitutability of public expenditure for private consumption is not significantly different from zero.
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