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The literature on the government spending multiplier has implicitly assumed that an increase in government spending has … approach, or (ii) a timing restriction, we find that the contractionary multiplier – the multiplier associated with a negative … multiplier – the multiplier associated with a positive shock – is substantially below 1 regardless of the state of the cycle …
Persistent link: https://www.econbiz.de/10012952314
The literature on the government spending multiplier has implicitly assumed that an increase in government spending has … approach, or (ii) a timing restriction, we find that the contractionary multiplier—the multiplier associated with a negative … shock to government spending—is above 1 and even larger in times of economic slack. In contrast, the expansionary multiplier …
Persistent link: https://www.econbiz.de/10012931626
This study aims to measure the impact of the share of non-Ricardian households on fiscal multipliers. We show that the share of non-Ricardian households in Hungary increased significantly after crisis began and explain why the plausible reason for this increase is the higher level of liquidity...
Persistent link: https://www.econbiz.de/10012123344
We estimate state-dependent government spending multipliers for the United States. We use a Factor-Augmented Interacted Vector Autoregression (FAIVAR) model. This allows us to capture the time-varying monetary policy characteristics including the recent zero interest rate lower bound (ZLB)...
Persistent link: https://www.econbiz.de/10012209159
This paper examines issues related to the estimation of the government spending multiplier (GSM) in a Dynamic …
Persistent link: https://www.econbiz.de/10013106526
This paper shows that the fiscal multiplier for purchases of durable and investment goods is very small - much smaller … than the multiplier for nondurable goods. Standard models predict small durables multipliers because private sector …
Persistent link: https://www.econbiz.de/10011573302
We study fiscal spending multipliers of the UK economy using a time-varying parameter factor augmented vector autoregressive (TVP-FAVAR) model. We show that government spending multipliers vary over time and that most of the variation is cyclical: multipliers are typically above one in...
Persistent link: https://www.econbiz.de/10012932638
a Markov switching process. We find that the average government spending multiplier is significantly and persistently … inversely to their error variance. We then show that the multiplier is significantly smaller when volatility is high, consistent …
Persistent link: https://www.econbiz.de/10012289271
This paper investigates the role of informality in affecting the magnitude of the fiscal multiplier in a panel of 141 … size of the fiscal multiplier. This result holds irrespective of the levels of economic development and institutional …. Thus, informality raises the size of the unofficial multiplier. A higher degree of non-separability between public and …
Persistent link: https://www.econbiz.de/10014083505
a spending multiplier around unity when the economy is in an expansionary phase. The spending multiplier is greater and …. The tax revenue multiplier is negative and much smaller in magnitude than the spending multiplier. The results are robust …
Persistent link: https://www.econbiz.de/10013393435