政府支出과 民間消費

Government Spending and Private Consumption

The purpose of this paper is to investigate the empirical relationship between government spending and private consumption. More specifically the study tests empirically the hypothesis that government spending variable has an significant impact on the private consumption behavior. Two alternative models - Feldstein’s and Kormendi’s - are subject to empirical testing using the time-series data between 1970 and 1990. Two measures of government expenditure are related to private consumption and several other variables such as tax and public debt. The regression results do not support the interpretation that Ricardian equivalence proposition is applicable to the case of Korea. The results instead support the Feldstein hypothesis which claims the positive association between government fiscal activity and private consumption behavior. The VAR model also indicates the fact that the growth of government augments the increase in private consumption.