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Towards the end of 2009, the world economy was recovering from its deepest recession since the end of World War II. Most countries around the world took resort to fiscal policy in order to foster this recovery. In this paper, we first discuss the pros and cons of discretionary fiscal policy from...
Persistent link: https://www.econbiz.de/10010277785
Recent evaluations of the fiscal stimulus packages recently enacted in the United States and Europe such as Cogan, Cwik, Taylor and Wieland (2009) and Cwik and Wieland (2009) suggest that the GDP effects will be modest due to crowding-out of private consumption and investment. Corsetti, Meier...
Persistent link: https://www.econbiz.de/10010303696
the generality of this result w.r.t. size and persistence of the shock, size of the government spending multiplier, and …
Persistent link: https://www.econbiz.de/10010270052
area GDP. Since the EERP comprised both revenue and expenditurebased fiscal stimulus measures, the total multiplier is …
Persistent link: https://www.econbiz.de/10011605528
measures emphasize that government spending can stimulate additional private spending the so-called Keynesian multiplier effect …, when stimulus is most needed, may even be negative. Traditional Keynesian multiplier effects only arise in a model that …
Persistent link: https://www.econbiz.de/10010303706
measures emphasize that government spending can stimulate additional private spending — the Keynesian multiplier effect. Thus …
Persistent link: https://www.econbiz.de/10011605313
effect on total GDP. In this setup the spending multiplier shows large long-run effects, considerably stronger than those …
Persistent link: https://www.econbiz.de/10010277384
measures, the analysis of fiscal multiplier effects is back on the scientific agenda. The number of empirical studies is … regression analysis to a set of 89 studies on multiplier effects in order to provide a systematic overview of the different … type of fiscal impulse, model class, multiplier calculation method and further control variables. Moreover, we analyse …
Persistent link: https://www.econbiz.de/10010460523
Abstract This paper conducts an empirical investigation of the effects of temporary versus persistent fiscal policy shocks. Using data from the US I show that short lived fiscal expansions have a positive effect on output and consumption; while persistent fiscal shocks generate negative effects...
Persistent link: https://www.econbiz.de/10010316756
the fiscal multiplier increases with the elasticity of matching to spending and is also negatively related with the steady … state spending to GDP ratio in the presence of diminishing marginal returns on spending. For large value of the multiplier …
Persistent link: https://www.econbiz.de/10010316798