-agent New Keynesian model, this paper shows analytically that the multiplier on targeted transfers to financially constrained … households is (i) larger than the purchase multiplier if the zero lower bound (ZLB) binds, and (ii) is more sensitive to the …, such as when the zero lower bound binds, the extra inflation from lower supply boosts the multiplier. This result also …

tended to grow faster contemporaneously, with a multiplier of around 1.5 for permanent transfers and 1/3 for temporary …

economic activity, the government spending multiplier is positive and significant: an additional 1 USD of spending leads to an … positive expenditure multiplier imply that fiscal policy in South Asia amplifies boom-and-bust cycles …

) than weak. For instance, the long-run multiplier can be as large as unity when the fiscal position is strong, while it can … business cycle on the fiscal multiplier. Third, the state-dependent effects of the fiscal position on multipliers is …

year later and 0.32 job two years later. The multiplier is modest during the 2002-2007 boom and is large during the Great …

-based arguments, the effect of tax changes on output is highly non-linear. The tax multiplier is essentially zero under relatively low …

of public spending. I call this the functional multiplier.I disaggregate government spending in 36 low-income countries … percent larger multiplier compared to the average level of absorptive capacity. A similar exercise for contestability shows … that a one standard deviation change in contestability yields a 14 percent larger multiplier compared to the average level …