TY  - JOUR
AU  - Leiderman,Leonardo
AU  - Razin,Assaf
TI  - Consumption and Government-Budget Finance in a High-Deficit Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2032
PY  - 1986
Y2  - September 1986
UR  - http://www.nber.org/papers/w2032
L1  - http://www.nber.org/papers/w2032.pdf
N1  - Author contact info:
Leonardo Leiderman
Department of Economics
Tel-Aviv University
Ramat Aviv  69978
ISRAEL
E-Mail: leoleid@post.tau.ac.il

Assaf Razin
Department of Economics
Cornell University
Uris 422
Ithaca, NY 14853
Tel: 607/255-9625
Fax: 607/255-2818
E-Mail: ar256@cornell.edu
AB  - This paper characterizes empirically how government budget variables, such as spending, taxes, and deficits, affected private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops and estimates an intertemporal optimizing model of consumption choice by finite-lived individuals. The evidence supports this formulation against the Ricardian infinite-horizon case, but it does not support it when compared to the unrestricted relations in the data.
ER  -