Patrick F?ve; Matheron, Julien; Sahuc, Jean-Guillaume - In: American Economic Journal: Macroeconomics 5 (2013) 4, pp. 141-78
This paper examines issues related to the estimation of the government spending multiplier (GSM) in a DSGE context. We stress a source of bias in the GSM arising from the combination of endogenous government expenditures and Edgeworth complementarity between private consumption and government...