Fève, Patrick; Matheron, Julien; Sahuc, Jean-Guillaume - Society for Economic Dynamics - SED - 2011
In this paper, we study issues related to the estimation of long–run government spending multiplier (GSM) in a Dynamic Stochastic General Equilibrium (DSGE) context. We stress a potential source of bias in the GSM arising from the combination of (i) Edgeworth complementarity between private...