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Mr Ricardo's Great Adventure: Estimating Fiscal Multipliers in a Truly Intertemporal Model
Bayoumi, Tamim; Sgherri, Silvia - C.E.P.R. Discussion Papers - 2006
We estimate tax multipliers in a "Blanchard-Yaari" consumption model where Ricardian equivalence is broken because the private sector discounts the future at a faster rate than the real rate of interest. The model fits U.S. data since 1955 extremely well-entailing a discount wedge of around 20...
Persistent link: https://www.econbiz.de/10005114505
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The Limits to Fiscal Stimulus
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2009
The paper considers the case for an internationally coordinated further fiscal stimulus during the second half of 2009. Although this makes some of the analysis period-specific, most of the issues and principles considered are timeless. For a fiscal stimulus to be both effective there must be...
Persistent link: https://www.econbiz.de/10008557012
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New Keynesian versus old Keynesian government spending multipliers
Cogan, John F.; Cwik, Tobias; Taylor, John B.; Wieland, … - C.E.P.R. Discussion Papers - 2009
Renewed interest in fiscal policy has increased the use of quantitative models to evaluate policy. Because of modeling uncertainty, it is essential that policy evaluations be robust to alternative assumptions. We find that models currently being used in practice to evaluate fiscal policy...
Persistent link: https://www.econbiz.de/10004961429
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What Determines Government Spending Multipliers?
Corsetti, Giancarlo; Meier, André; Müller, Gernot - C.E.P.R. Discussion Papers - 2012
This paper studies how the effects of government spending vary with the economic environment. Using a panel of OECD countries, we identify fiscal shocks as residuals from an estimated spending rule and trace their macroeconomic impact under different conditions regarding the exchange rate...
Persistent link: https://www.econbiz.de/10011083665
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How Large Are the Effects of Tax Changes?
Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2009
that tax shocks are orthogonal to each other as well as to lagged values of other macro variables. Our estimated multiplier … after 1980) we find, before 1980, a multiplier whose size is never greater than one, after 1980 a multiplier not …
Persistent link: https://www.econbiz.de/10005082536
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Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy
Favero, Carlo A.; Giavazzi, Francesco; Perego, Jacopo - C.E.P.R. Discussion Papers - 2011
analysis is that the question 'what is the fiscal policy multiplier' is an ill-posed one. There is no unconditional fiscal … policy multiplier. The effect of fiscal policy on output is different depending on the different debt dynamics, the different … and an average fiscal multiplier is of very little use to describe the effect of exogenous shifts in fiscal policy on …
Persistent link: https://www.econbiz.de/10009201121
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Debt-sensitive Majority Rules
Becker, Johannes Gerd; Gersbach, Hans; Grimm, Oliver - C.E.P.R. Discussion Papers - 2010
We examine debt-sensitive majority rules. According to such a rule, the higher a planned public debt, the higher the parliamentary majority required to approve it. In a two-period model we compare debt-sensitive majority rules with the simple majority rule when individuals differ regarding their...
Persistent link: https://www.econbiz.de/10008468567
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Reconciling VAR-based and Narrative Measures of the Tax-Multiplier
Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2010
.S. output of an exogenous shift in Federal tax liabilities. Shocks identified via the narrative method imply a multiplier of … about three over an horizon of three years. Tax shocks identified in fiscal VAR models deliver a much smaller multiplier of … shifts in taxes? Or of different specifications of the empirical model used to estimate the tax multiplier? In this paper we …
Persistent link: https://www.econbiz.de/10008468626
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Long-Term Public Debt and the Fiscal Theory of the Price Level
Bloise, Gaetano; Reichlin, Pietro - C.E.P.R. Discussion Papers - 2006
The fiscal theory of the price level asserts that the price level is determined by the ratio of outstanding public nominal debt into the present value of real primary budget surpluses of the government. We here argue that the logic of the fiscal theory fails when at least part of the public debt...
Persistent link: https://www.econbiz.de/10005123617
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`Excessive Deficits': Sense and Nonsense in the Treaty of Maastricht
Buiter, Willem H.; Corsetti, Giancarlo; Roubini, Nouriel - C.E.P.R. Discussion Papers - 1992
In this paper we evaluate internationally agreed limits on public sector debt and deficits, such as those agreed by the EC countries in the Treaty of Maastricht as preconditions for membership in a monetary union. These fiscal convergence criteria require that general government budget deficits...
Persistent link: https://www.econbiz.de/10005123755