Di Serio, Mario; Fragetta, Matteo; Gasteiger, Emanuel - 2020
We estimate state-dependent government spending multipliers for the United States. We use a Factor-Augmented Interacted …, we find that government spending multipliers in a recession range from 3:56 to 3:79 at the ZLB. Away from the ZLB …, multipliers in recessions range from 2:31 to 3:05. Several robustness analyses confirm that multipliers are higher, when the …