Crespo Cuaresma, Jesús; Glocker, Christian - 2020
We assess the role that nontradable goods play as a determinant of fiscal spending multipliers, making use of a two …-sector model. While fiscal multipliers increase with the share of nontradable goods, an inverted U-shaped relationship exists … of the share of nontradable goods on fiscal spending multipliers. Our empirical results provide strong evidence for the …