The Savers–Spenders Theory of Fiscal Policy

N. Gregory Mankiw

535 citations0/0 files storedAmerican Economic Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Fiscal Policies and Political Economy Economic and Fiscal Studies Fiscal Policy and Economic Growth

Abstract

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.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 535 citations exist upstream.

References

1973Availability: A heuristic for judging frequency and probability 1974Are Government Bonds Net Wealth?1978Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence 1989Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence 1997Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis 1981The Role of Intergenerational Transfers in Aggregate Capital Accumulation 1980The Role of Intergenerational Transfers in Aggregate Capital Accumulation 1999The Response of Household Consumption to Income Tax Refunds

Cited by

2009Optimal Taxation in Theory and Practice 2007Limited asset markets participation, monetary policy and (inverted) aggregate demand logic 2014Mafia and Public Spending: Evidence on the Fiscal Multiplier from a Quasi-Experiment 2004Budget Deficits, National Saving, and Interest Rates 2010Fiscal Deficits, Public Debt, and Sovereign Bond Yields 2002

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.