Mayer, Eric; Rüth, Sebastian; Scharler, Johann - In: Economic Modelling 33 (2013) C, pp. 762-771
We analyze the influence of the fiscal position on the transmission of government spending shocks in a New Keynesian model. We find that once we allow for positive levels of government debt in the steady state, the size of the fiscal multiplier depends strongly on the horizon at which the...
