spent on nondurable household consumption in the quarter that they are received. To interpret this fact, we develop a … rebate episode yields consumption responses to fiscal stimulus payments that are in line with the evidence, and an order of …

We document that variations in government purchases generate a rise in consumption, the real and the product wage, and … effect is linked to the degree of complementarity between consumption and hours. We show that the model is able to match our … the positive wealth effect on labor supply is small and therefore the negative wealth effect on consumption is, somewhat …

disagree even on the basic effects of a shock to government spending on goods and services: neoclassical models predict that … private consumption and the real wage will fall, while some neo-keyenesian models predict the opposite. This paper discusses …

cycle, whereas the welfare multiplier (the consumption equivalent change in a measure of aggregate welfare for the same …This paper studies the state-dependence of the output and welfare effects of shocks to government purchases in a … bound, both the output and welfare multipliers are larger and move significantly more across states than under a Taylor rule …

We analyze whether government spending multipliers differ by the sign of the shock. Using aggregate historical U …, the resulting multipliers do not differ by sign of the shock. Thus, we find no evidence of asymmetry of government …

countries. For EU countries, at the 1-year frequency percent of shocks to GDP are smoothed via government consumption, 18 …-off between high government deficits in a country and the ability to smooth consumption. We find that in countries where there is … delegation' of power or where fiscal targets are negotiated effectively by coalition members consumption smoothing via government …

small movements in private consumption. We describe and implement a methodology for assessing whether standard neoclassical … models can account for the consequences of a fiscal policy shock. Simple versions of the neoclassical model can account for … the qualitative effects of a fiscal shock. Once we allow for habit formation and investment adjustment costs, the model …

demand. Fiscal policy, especially energy price subsidies, can isolate individual energy importers from the shock, but it has …