Deep Habits, Price Rigidities, and the Consumption Response to Government Spending
研究了商品特定习惯形成和价格刚性两种摩擦如何影响政府支出对消费的挤入效应，发现两者并用时可能削弱消费-休闲替代，甚至在高价格粘性下导致消费被挤出。
This paper studies two frictions, good‐specific habit formation and price rigidities, used in theoretical models to generate the crowding‐in of consumption by expansionary government spending observed in the data. Both frictions generate countercyclical price markups, rising wages, and ensuing consumption–leisure substitution to overcome the negative wealth effect of the fiscal expansion. I demonstrate that while they independently support the rise of consumption, when used together the two frictions exert opposing pressures on the markup and the wage, weakening consumption–leisure substitution. Crucially, when price stickiness is high enough in an economy with “deep” habits, consumption is crowded out by the fiscal expansion.