Factor supply increases (depresses) output for many of the same reasons that the government spending multiplier might …" and suggest that the government spending multiplier is less than one, even during the recession …

wages; in a fairly broad class of simple models, the multiplier is 1 in the case that the monetary authority maintains a … constant path for real interest rates. The multiplier can be considerably smaller, however, if the monetary authority raises … multiplier is especially plausible when monetary policy is constrained by the zero lower bound on nominal interest rates; in such …

) a fiscal multiplier of one and so a missing intercept close to zero. I also discuss the robustness of this aggregation …

flow multiplier''. The main contribution of the paper, however, is empirical. Using a very extensive data set comprised of … more than 13,000 fims over 44 years we examine the determinants of the cash flow multiplier using as explanatory variables …

We argue that the government-spending multiplier can be much larger than one when the zero lower bound on the nominal … larger is the value of the multiplier. After providing intuition for these results, we investigate the size of the multiplier … in a dynamic, stochastic, general equilibrium model. In this model the multiplier effect is substantially larger than one …