Government spending at the zero lower bound (ZLB) is not necessarily welfare enhancing, even when its output multiplier …

The fiscal "multiplier" measures how many additional dollars of output are gained or lost for each dollar of fiscal … stimulus or contraction. In practice, the multiplier at any point in time depends on the monetary policy response and existing …, we show how to quantify the importance of these monetary-fiscal interactions. In the data, the fiscal multiplier varies …

.8. Economic theory of how to map these multipliers into a national multiplier has also advanced. Drawing on the theoretical …A geographic cross-sectional fiscal spending multiplier measures the effect of an increase in spending in one region in … Reinvestment Act and a survey of empirical studies, my preferred point estimate for a cross-sectional output multiplier is 1 …

) a fiscal multiplier of one and so a missing intercept close to zero. I also discuss the robustness of this aggregation …

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 …

government purchases multiplier. But equally crucial is the size of the government purchases multiplicand--the change in … government purchases of goods and services that the multiplier actually multiplies. Using new data from the Bureau of Economic … government purchases multiplier, changes in government purchases have had no material effect on the growth of GDP since the time …

Factor supply increases (depresses) output for many of the same reasons that the government spending multiplier might …" and suggest that the government spending multiplier is less than one, even during the recession …