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Imperfect Competition and the Effects of Energy Price Increases on Economic Activity

Rotemberg, Julio J. - 1996

We show that modifying the standard neoclassical growth model by assuming that competition is imperfect makes it easier to explain the size of the declines in output and real wages that follow increases in the price of oil. Plausibly parameterized models of this type are able to mimic the...

Persistent link: https://www.econbiz.de/10012473211

Energy Prices, Inflation, and Recession, 1974-1975

Mork, Knut Anton - 1979

The energy price shock depressed real output by two percent in 1974 and by five percent in 1975, according to our results. Prices rose by four percent in 1974 and by another two percent in 1975. These conclusions are derived from an aggregate model of the U.S. economy with an explicit role of...

Persistent link: https://www.econbiz.de/10012478779

Tiebout Sorting, Social Multipliers and the Demand for School Quality

Bayer, Patrick - 2004

multiplier associated with heterogeneous preferences for peers and neighbors; initial changes in school quality set in motion a …

Persistent link: https://www.econbiz.de/10012467818

Clearing Up the Fiscal Multiplier Morass : Prior and Posterior Analysis

Leeper, Eric M. - 2015

We use Bayesian prior and posterior analysis of a monetary DSGE model, extended to include fiscal details and two distinct monetary-fiscal policy regimes, to quantify government spending multipliers in U.S. data. The combination of model specification, observable data, and relatively diffuse...

Persistent link: https://www.econbiz.de/10012457235

The Output and Welfare Effects of Government Spending Shocks over the Business Cycle

Sims, Eric - 2013

canonical medium scale DSGE model. When monetary policy is characterized by a Taylor rule, the output multiplier (the change in … cycle, whereas the welfare multiplier (the consumption equivalent change in a measure of aggregate welfare for the same …. The welfare multiplier is still procyclical under passive monetary policy, albeit less so than under a Taylor rule …

Persistent link: https://www.econbiz.de/10012458914

The Time for Austerity : Estimating the Average Treatment Effect of Fiscal Policy

Jordà, Òscar - 2013

After the Global Financial Crisis a controversial rush to fiscal austerity followed in many countries. Yet research on the effects of austerity on macroeconomic aggregates was and still is unsettled, mired by the difficulty of identifying multipliers from observational data. This paper...

Persistent link: https://www.econbiz.de/10012459247

Tax Multipliers : Pitfalls in Measurement and Identification

Riera-Crichton, Daniel - 2012

On the identification front, our findings favor the use of narratives à la Romer and Romer (2010) to identify exogenous fiscal shocks as opposed to the identification via SVAR. On the (much less explored) measurement front, our results strongly support the use of tax rates as a true measure of...

Persistent link: https://www.econbiz.de/10012460163

Fiscal Multipliers : Liquidity Traps and Currency Unions

Farhi, Emmanuel - 2012

We provide explicit solutions for government spending multipliers during a liquidity trap and within a fixed exchange regime using standard closed and open-economy models. We confirm the potential for large multipliers during liquidity traps. For a currency union, we show that self-financed...

Persistent link: https://www.econbiz.de/10012460278

The Firm-Level Credit Multiplier

Campello, Murillo - 2012

investment. Using a dynamic model, we characterize this effect - which we call firm-level credit multiplier - and show how asset … manufacturers over the 1971-2005 period as well as simulated data, we find support for our theory's tangibility-investment channel …We study the effect of asset tangibility on corporate financing and investment decisions. Financially constrained firms …

Persistent link: https://www.econbiz.de/10012460853

Government Spending and Private Activity

Ramey, Valerie A. - 2012

falls significantly in response to an increase in government spending. These results imply that the average GDP multiplier … lies below unity. In order to determine whether concurrent increases in tax rates dampen the spending multiplier, I use two … spending multiplier. In the second part of the paper, I explore the effects of government spending on labor markets. I find …

Persistent link: https://www.econbiz.de/10012460871