Koray, Faik; Arin, K. Peren; Spagnolo, Nicola - Department of Economics, Ourso College of Business
This paper estimates the magnitudes of government spending and tax multipliers within a regime-switching framework for the U.S economy during the period 1949:1- 2006:4. Our results show that the magnitudes of spending multipliers are larger during periods of low economic activity, while the...