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Simple Calculus of Resolving the Fiscal Policy Puzzle: The Role of Human Capital
School of Political Science and Economics, Tokai University, Kanagawa, Japan
- 1 School of Political Science and Economics, Tokai University, Kanagawa, Japan
Theoretical Economics Letters·Volume 04 (2014)·Pages 739–742·Published 21 November 2014·DOI10.4236/tel.2014.49093
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Abstract
This paper investigates how much externality of human capital a la on-the-job training resolves the fiscal policy puzzle that is consistent with the empirical evidences which obtain the positive response of consumption and wage to increase of fiscal spending in general equilibrium model.
KeywordsFiscal Policy PuzzleHuman CapitalGeneral Equilibrium Model
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