Di Serio, Mario; Fragetta, Matteo; Melina, Giovanni - 2021
-called r-g. Whether the fiscal shock occurs when r-g is positive or negative matters for the size of the multiplier. Median … estimates vary conditional on the specification, but the difference between multipliers in the negative and positive r-g regimes … between 1.22 and 1.77 when r-g is negative, and between 0.51 and 1.26 when r-g is positive. We show that the results are not …