The composition of government spending and the multiplier at the zero lower bound

We investigate the size of the multiplier at the ZLB in a New Keynesian model. It ranges from around −0.25 to +1.5, depending on the extent to which the government spending is productive, substitutable or not for private consumption.

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Year of publication:	2014
Authors:	Albertini, Julien ; Poirier, Arthur ; Roulleau-Pasdeloup, Jordan
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 122.2014, 1, p. 31-35
Publisher:	Elsevier
Subject:	Zero lower bound \| New Keynesian \| Government spending multiplier

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Type of publication:	Article
Classification:	E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011041655