A key issue in current research and policy is the size of fiscal multipliers when the economy is in recession. We provide three insights. First, using regime-switching models, we find large differences in the size of spending multipliers in recessions and expansions with fiscal policy being...

The published version of our paper had an accounting mistake in the construction of one time series. This note describes the mistake and presents results based on corrected data. The revised results are very similar to those originally reported.