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The Permanent Effects of Fiscal Consolidations

Fatás, Antonio - 2016

The global financial crisis has permanently lowered the path of GDP in all advanced economies. At the same time, and in response to rising government debt levels, many of these countries have been engaging in fiscal consolidations that have had a negative impact on growth rates. We empirically...

Persistent link: https://www.econbiz.de/10012456303

De facto Fiscal Space and Fiscal Stimulus : Definition and Assessment

Aizenman, Joshua - 2010

We define the notion of a 'de facto fiscal space' of a country as the inverse of the tax-years it would take to repay the public debt. Specifically, we measure the outstanding public debt relative to the de facto tax base, where the latter measures the realized tax collection, averaged across...

Persistent link: https://www.econbiz.de/10012462118

How Big (Small?) are Fiscal Multipliers?

Ilzetzki, Ethan - 2010

countries, (ii) the fiscal multiplier is relatively large in economies operating under predetermined exchange rates but is zero …

Persistent link: https://www.econbiz.de/10012462178

Fiscal Stimulus and Fiscal Sustainability

Auerbach, Alan J. - 2017

The Great Recession and the Global Financial Crisis have left many developed countries with low interest rates and high levels of public debt, thus limiting the ability of policymakers to fight the next recession. Whether new fiscal stimulus programs would be jeopardized by these already heavy...

Persistent link: https://www.econbiz.de/10012453922

The Effects of a Money-Financed Fiscal Stimulus

Galí, Jordi - 2019

I analyze the effects of a money-financed fiscal stimulus and compare them with those resulting from a conventional debt-financed stimulus. I study the effects of both a tax cut and an increase in government purchases, with and without a binding zero lower bound (ZLB) on the nominal interest...

Persistent link: https://www.econbiz.de/10012480193

Clearing Up the Fiscal Multiplier Morass : Prior and Posterior Analysis

Leeper, Eric M. - 2015

We use Bayesian prior and posterior analysis of a monetary DSGE model, extended to include fiscal details and two distinct monetary-fiscal policy regimes, to quantify government spending multipliers in U.S. data. The combination of model specification, observable data, and relatively diffuse...

Persistent link: https://www.econbiz.de/10012457235

Fiscal Multipliers in Japan

Auerbach, Alan J. - 2014

In this paper, we estimate government purchase multipliers for Japan, following the approach used previously for a panel of OECD countries (Auerbach and Gorodnichenko, 2013). This approach allows multipliers to vary smoothly according to the state of the economy and uses real-time forecast data...

Persistent link: https://www.econbiz.de/10012458753

The Output and Welfare Effects of Government Spending Shocks over the Business Cycle

Sims, Eric - 2013

canonical medium scale DSGE model. When monetary policy is characterized by a Taylor rule, the output multiplier (the change in … cycle, whereas the welfare multiplier (the consumption equivalent change in a measure of aggregate welfare for the same …. The welfare multiplier is still procyclical under passive monetary policy, albeit less so than under a Taylor rule …

Persistent link: https://www.econbiz.de/10012458914

The Time for Austerity : Estimating the Average Treatment Effect of Fiscal Policy

Jordà, Òscar - 2013

After the Global Financial Crisis a controversial rush to fiscal austerity followed in many countries. Yet research on the effects of austerity on macroeconomic aggregates was and still is unsettled, mired by the difficulty of identifying multipliers from observational data. This paper...

Persistent link: https://www.econbiz.de/10012459247

Are Government Spending Multipliers Greater During Periods of Slack? Evidence from 20th Century Historical Data

Owyang, Michael T. - 2013

A key question that has arisen during recent debates is whether government spending multipliers are larger during times when resources are idle. This paper seeks to shed light on this question by analyzing new quarterly historical data covering multiple large wars and depressions in the U.S. and...

Persistent link: https://www.econbiz.de/10012459892