Jones, Paul M.; Olson, Eric - In: Economics Letters 122 (2014) 2, pp. 116-118
Romer and Romer (2010) use the narrative record to generate a time series of exogenous shocks to fiscal policy. They report a tax multiplier of 3.0. We extend their analysis and allow for nonlinearities between their shocks and the effects on output by estimating a threshold regression model....