Showing 1 - 10 of 1,274
"multiplier effect": when a shock drives up the price of food, exporters respond by imposing restrictions while importers wind … prediction of the theory with a new dataset that comprises monthly information on trade measures across 77 countries and 33 food … products for the period 2008-11, finding evidence of a multiplier effect in food trade policy. These findings contribute to …
Persistent link: https://www.econbiz.de/10014411694
The paper assesses, using seven structural models used heavily by policymaking institutions, the effectiveness of temporary fiscal stimulus. Models can, more easily than empirical studies, account for differences between fiscal instruments, for differences between structural characteristics of...
Persistent link: https://www.econbiz.de/10014402816
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/10014402981
propose a simple method—dubbed the “bucket approach” to come up with reasonable multiplier estimates. The approach bunches … countries into groups (or “buckets”) with similar multiplier values, based on their characteristics. It also takes into account …
Persistent link: https://www.econbiz.de/10014411398
This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal...
Persistent link: https://www.econbiz.de/10014399540
This paper investigates how macroeconomic uncertainty affects the fiscal multiplier of public investment. In theory …, uncertainty can reduce the multiplier if the private sector becomes more cautious and does not respond to the fiscal stimulus …. Conversely, it can increase the fiscal multiplier if public investment shocks improve private agents' expectations about future …
Persistent link: https://www.econbiz.de/10012796171
theory (Myers 1977). We also find that the effect of public investment on corporate investment is much weaker for firms that …
Persistent link: https://www.econbiz.de/10012391930
Using the post-WWII data of U.S. federal corporate income tax changes, within a Smooth Transition VAR, this paper finds that the output effect of capital income tax cuts is government debt-dependent: it is less expansionary when debt is high than when it is low. To explore the mechanisms that...
Persistent link: https://www.econbiz.de/10012251390
We investigate the role of macroprudential policies in mitigating liquidity traps driven by deleveraging, using a simple Keynesian model. When constrained agents engage in deleveraging, the interest rate needs to fall to induce unconstrained agents to pick up the decline in aggregate demand....
Persistent link: https://www.econbiz.de/10014411478
-run capital flows in both theory and in the data. For this purpose, we develop a two region overlapping generations model where …
Persistent link: https://www.econbiz.de/10011978549