Abstract
Firms desire to hold inventories because of uncertainty about aggregate demand. Other markets are clear and expectations are rational. An increase in government consumption will, under certain conditions, have a persistent positive effect on output.
| Original language | English |
|---|---|
| Pages (from-to) | 229-233 |
| Number of pages | 4 |
| Journal | Economics Letters |
| Volume | 9 |
| Issue number | 3 |
| Publication status | Published - 1982 |