We measure the size of the fiscal multiplier using a heterogeneous-agent model with incomplete markets, capital and …We find that market incompleteness is key to determining the size of the fiscal multiplier, which is uniquely … determined in our model for any combination of fiscal and monetary policies of interest. The multiplier is 1.34 if deficit …

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 …

effects from these partisan differences. First, the transfer multiplier would rise by 0.60 if Republican governors were to … imply variation in the fiscal multiplier of 0.40. Local projection regressions support this prediction …

) Globally, fiscal policy helped offset about 8% of the downturn in COVID, with a low 'traditional' fiscal multiplier. Yet it …

that year. As a result our preferred government spending multiplier is 1.80 when the time period ends in 1941:Q2 but only 0 ….88 when the time period ends in supply-constrained 1941:Q4. Only the 1.80 multiplier is relevant to situations like 2009 …

shocks, with military spending having the largest multiplier. Third, we show that controlling for predictable components of …

output multiplier whereas it can produce a realistic unemployment multiplier but only under a special parameterization …