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This paper provides evidence that austerity shocks have long-run negative effects on GDP. Besides addressing the important gap in the growing fiscal research regarding the short time horizon of the estimations, this paper analyzes two other important assumptions made in the literature regarding...
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overall and non-green multipliers are driven by southern provinces, while the green multiplier is driven by the rest of the … country, despite the contemporaneous green multiplier being equal to 1.43 in the south. I link the heterogeneity to governance … characteristics: higher government effectiveness and institutional quality decrease the overall and non-green multiplier, while they …
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estimated stimulus is extremely small with GDP and employment effects only one-sixth as large. -- Fiscal Multiplier ; New …
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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 …
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