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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
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Do Government Spending Multipliers Depend on the Sign of the Shock?
Ben Zeev, Nadav; Ramey, Valerie A.; Zubairy, Sarah - National Bureau of Economic Research - 2023
We analyze whether government spending multipliers differ by the sign of the shock. Using aggregate historical U.S. data, we apply Ben Zeev's (2020) nonlinear diagnostic tests and find evidence of nonlinearities in the impulse response functions of both government spending and GDP. We then...
Persistent link: https://www.econbiz.de/10014247936
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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
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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
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Fiscal Expansions and Fiscal Adjustments in OECD Countries
Alesina, Alberto - 1995
This paper considers budget expansions and adjustments in OECD countries in the last three decades. Our main results are: i) on average fiscal expansions are the results of increases in expenditures, particularly of transfer programs, while contractions are typically due to tax increases; ii)...
Persistent link: https://www.econbiz.de/10012473663
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State Dependent Government Spending Multipliers : Downward Nominal Wage Rigidity and Sources of Business Cycle Fluctuations
Jo, Yoon J.; Zubairy, Sarah - National Bureau of Economic Research - 2022
spending multiplier is large when DNWR binds, but the nature of recession matters due to the opposing response of inflation. In …
Persistent link: https://www.econbiz.de/10013210053
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A Fiscal Theory of Trend Inflation
Bianchi, Francesco; Faccini, Renato; Melosi, Leonardo - National Bureau of Economic Research - 2022
We develop a new class of general equilibrium models with partially unfunded debt to propose a fiscal theory of trend inflation. In response to business cycle shocks, the monetary authority controls inflation, and the fiscal authority stabilizes debt. However, the central bank accommodates...
Persistent link: https://www.econbiz.de/10013477219
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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 … novel approach, we show that austerity is always a drag on growth, and especially so in depressed economies: a one percent …
Persistent link: https://www.econbiz.de/10012459247
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State-Dependent Local Projections : Understanding Impulse Response Heterogeneity
Cloyne, James; Jordà, Òscar; Taylor, Alan M. - National Bureau of Economic Research - 2023
decomposition-based approach, we show how to unpack heterogeneity in the fiscal multiplier, an object that at any point in time may … our application, the fiscal multiplier varies considerably with monetary policy: it can be as small as zero, or as large …
Persistent link: https://www.econbiz.de/10014226168
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Political Economy of Debt and Growth
Battaglini, Marco - 2015
grow slower than GDP and the tax rate declines. We use the model to study the impact of austerity programs which impose a …
Persistent link: https://www.econbiz.de/10012457009