NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Savers-Spenders Theory of Fiscal Policy

N. Gregory Mankiw

NBER Working Paper No. 7571
Issued in February 2000
NBER Program(s):   EFG   ME

The macroeconomic analysis of fiscal policy is usually based on one of two canonical models--the Barro-Ramsey model of infinitely-lived families or the Diamond-Samuelson model of overlapping generations. This paper argues that neither model is satisfactory and suggests an alternative. In the proposed model, some consumers plan ahead for themselves and their descendants, while others live paycheck to paycheck. This model is easier to reconcile with the essential facts about consumer behavior and wealth accumulation, and it yields some new and surprising conclusions about fiscal policy.

download in pdf format
   (1160 K)

email paper

This paper is available as PDF (1160 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7571

Published: Mankiw, N. Gregory. "The Savers-Spenders Theory Of Fiscal Policy," American Economic Review, 2000, v90(2,May), 120-125. citation courtesy of

Users who downloaded this paper also downloaded these:
Backus, Devereux, and Purvis A Positive Theory of Fiscal Policy in Open Economies
Campbell and Mankiw Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence
Feldstein w14684 Rethinking the Role of Fiscal Policy
Mankiw, Weinzierl, and Yagan w15071 Optimal Taxation in Theory and Practice
Engen and Hubbard Federal Government Debt and Interest Rates
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us