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Revisiting the narrative approach of estimating tax multipliers

Hebous, Shafik; Zimmermann, Tom - 2014

A number of recent studies regress a "narratively" identified measure of a macroeconomic shock directly on an outcome variable. In this note, we argue that this approach can be viewed as the reduced-form regression of an instrumental variable approach in which the narrative time series is used...

Persistent link: https://www.econbiz.de/10010424792

Regional equilibrium unemployment theory at the age of the internet

Lutgen, Vanessa; Van der Linden, Bruno - 2015

This paper studies equilibrium unemployment in a two-region economy with matching frictions, where workers and jobs are free to move and wages are bargained over. Job-seekers choose between searching locally or searching in both regions. Search-matching externalities are amplified by the latter...

Persistent link: https://www.econbiz.de/10010515473

Fiscal policy, monopolistic competition, and finite lives

Heijdra, Ben J. (contributor); … - 2006

multiplier; (ii) positive long-run output multipliers are obtained only if the generational turnover effect is dominated by the …

Persistent link: https://www.econbiz.de/10003301047

Food prices and the multiplier effect of export policy

Giordani, Paolo E.; Rocha, Nadia; Ruta, Michele - 2012

countries give rise to a "multiplier effect": when a shock in the international food market drives up (down) its price … 29 food products for the period 2008-10, finding evidence of a multiplier effect. Global restrictions in a product (i … to restrictive measures, suggesting that the multiplier effect is mostly driven by this group. Finally, we estimate that …

Persistent link: https://www.econbiz.de/10009522310

Monopolistic competition, efficiency wages and perverse effects of demand shock

Malley, James R.; Molana, Hassan - 2001

In this paper we construct a stylised general equilibrium macromodel to show that demand led expansions may have unexpected effects when market imperfections lead to changes in labour productivity. We find some empirical support, from a number of European countries, for the main predictions of...

Persistent link: https://www.econbiz.de/10011398788

Fiscal multipliers and the choice of zero lower bound modeling

Siemsen, Thomas; Watzka, Sebastian - 2013

multiplier. To this end we contrast two different ways to implement the ZLB in a New Keynesian model: the ZLB modeled as an … multiplier are not only due to differences in the timing assumption of government spending but also driven by the choice of the … ZLB modeling. Ceteris paribus, the impact multiplier is higher if the ZLB is modeled appropriately as a constraint. …

Persistent link: https://www.econbiz.de/10009772911

Using military build-ups to capture fiscal shocks : a reassessment

Yang, Weonho; Fidrmuc, Jan; Ghosh, Sugata - 2014

Ramey (2011a) and others argue that increases in government spending associated with wars and military build-ups constitute a good instrument for measuring the macroeconomic effects of fiscal shocks. We argue that this instrument has two important drawbacks: the composition of government...

Persistent link: https://www.econbiz.de/10010256126

Fiscal multipliers in a two-sector search and matching model

Angelopulos, Kōnstantinos; Jiang, Wei; Malley, James R. - 2015

This paper evaluates the effects of policy interventions on sectoral labour markets and the aggregate economy in a business cycle model with search and matching frictions. We extend the canonical model by including capital-skill complementarity in production, labour markets with skilled and...

Persistent link: https://www.econbiz.de/10010477900

Private debt overhang and the government spending multiplier : evidence for the United States

Bernardini, Marco; Peersman, Gert - 2015

Using state-dependent local projection methods and historical U.S. data, we find that government spending multipliers are considerably larger in periods of private debt overhang. In particular, we find significant crowding-out of personal consumption and investment in low-debt states, resulting...

Persistent link: https://www.econbiz.de/10010498604

Can we rely upon fiscal policy estimates in countries with unreported production of 15 per Cent (or more) of GDP?

Basile, Raffaella; Chiarini, Bruno; Marzano, Elisabetta - 2011

effect on total GDP. In this setup the spending multiplier shows large long-run effects, considerably stronger than those …

Persistent link: https://www.econbiz.de/10009230776