Ferraresi, Tommaso; Roventini, Andrea; Fagiolo, Giorgio - 2013
In the present work we investigate how the state of credit markets non-linearly affects the impact of fiscal policies … spread between BAA-rated corporate bond yield and 10-year treasury constant maturity rate as a proxy for credit conditions … "tight" credit regime. The fiscal multipliers are abundantly and persistently higher than one when firms face increasing …