Government Debt, Government Spending, and Private Sector Behavior: Comment

摘要: In a recent issue of this Review (1983), Roger Kormendi relied upon the work Martin Bailey (1962, 1971) and Robert Barro (1974) "to develop an alternative approach to modeling private sector consumptionsaving behavior based on rational evaluation consequences government fiscal policy" (p. 995). Briefly, involves determining what extent spending substitutes for consumption, debt is net wealth thereby also affects consumption. This "consolidated approach" examining consumption not only novel, but appears at time when there widespread interest as well controversy over effects policy. It therefore seems appropriate examine further results obtained by Kormendi-not criticize them rather explore their robustness. comment specifically explores sensitivity Kormendi's periods estimation, differentiation between federal state local debt, measurement debt-particularly par vs. market value.