Showing 1 - 10 of 18
We analyze the influence of the fiscal position on the transmission of government spending shocks in a New Keynesian model. We find that once we allow for positive levels of government debt in the steady state, the sign and the size of the fiscal multiplier depend strongly on the horizon at...
Persistent link: https://www.econbiz.de/10009502870
Persistent link: https://www.econbiz.de/10010194394
Persistent link: https://www.econbiz.de/10009571186
We study the household sector's post-tax income and debt position as propagation mechanisms of public into private spending, in postwar U.S. data. In structural VARs, we obtain the consumption "crowding-in puzzle" for surges in public spending and show this consumption response to be accompanied...
Persistent link: https://www.econbiz.de/10012167583
Expansions in public spending induce a surge in private consumption that is accompanied by increasing post-tax income of households. Endogenously reacting income, however, is insufficient to rationalize conditional comovement of private and public spending: household expenditures even expand in...
Persistent link: https://www.econbiz.de/10013300058
Persistent link: https://www.econbiz.de/10013542995
Persistent link: https://www.econbiz.de/10001374948
Persistent link: https://www.econbiz.de/10001408748
Persistent link: https://www.econbiz.de/10012120224