substitution effects, yielding uniform comparisons across models. By constraining the multiplier to tight ranges, model and prior …

. With allowance for other factors holding back GDP growth during those wars, the multiplier linking government purchases to … as well. On the other hand, neoclassical models have a much lower multiplier, because they predict that consumption falls … when purchases rise. The key features of a model that delivers a higher multiplier are (1) the decline in the markup ratio …

or decreases, the "true" long-run multiplier for bad times (and government spending going up) turns out to be 2 ….3 compared to 1.3 if we just distinguish between recession and expansion. In extreme recessions, the long-run multiplier reaches …

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 …