Similar Search Results

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

Do Government Spending Multipliers Depend on the Sign of the Shock?

Ben Zeev, Nadav; Ramey, Valerie A.; Zubairy, Sarah - National Bureau of Economic Research - 2023

We analyze whether government spending multipliers differ by the sign of the shock. Using aggregate historical U …, the resulting multipliers do not differ by sign of the shock. Thus, we find no evidence of asymmetry of government …

Persistent link: https://www.econbiz.de/10014247936

On DSGE Models

Christiano, Lawrence J. - 2018

The outcome of any important macroeconomic policy change is the net effect of forces operating on different parts of the economy. A central challenge facing policy makers is how to assess the relative strength of those forces. Dynamic Stochastic General Equilibrium (DSGE) models are the leading...

Persistent link: https://www.econbiz.de/10012452910

Capital Taxation and Ownership when Markets are Incomplete

Farhi, Emmanuel - 2007

business-cycle simulation, I show that a 15% short equity position achieves over 40% of the welfare gains from completing …

Persistent link: https://www.econbiz.de/10012465260

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

Fiscal Multipliers in Japan

Auerbach, Alan J. - 2014

In this paper, we estimate government purchase multipliers for Japan, following the approach used previously for a panel of OECD countries (Auerbach and Gorodnichenko, 2013). This approach allows multipliers to vary smoothly according to the state of the economy and uses real-time forecast data...

Persistent link: https://www.econbiz.de/10012458753

Are Government Spending Multipliers Greater During Periods of Slack? Evidence from 20th Century Historical Data

Owyang, Michael T. - 2013

A key question that has arisen during recent debates is whether government spending multipliers are larger during times when resources are idle. This paper seeks to shed light on this question by analyzing new quarterly historical data covering multiple large wars and depressions in the U.S. and...

Persistent link: https://www.econbiz.de/10012459892

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

Clearing Up the Fiscal Multiplier Morass

Leeper, Eric M. - 2011

substitution effects, yielding uniform comparisons across models. By constraining the multiplier to tight ranges, model and prior …

Persistent link: https://www.econbiz.de/10012461214

How Big (Small?) are Fiscal Multipliers?

Ilzetzki, Ethan - 2010

countries, (ii) the fiscal multiplier is relatively large in economies operating under predetermined exchange rates but is zero …

Persistent link: https://www.econbiz.de/10012462178