Schmitt-Grohé, Stephanie Schmitt-Grohe; Chahrour, Ryan; … - National Bureau of Economic Research (NBER) - 2010
The SVAR and narrative approaches to estimating tax multipliers deliver significantly different results. The former yields multipliers of about 1 percent, whereas the latter produces much larger multipliers of about 3 percent. The SVAR and narrative approaches differ along two important...