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Expansionary and contractionary fiscal multipliers in the U.S.

Kapetanios, George; Koutroumpis, Panagiotis; Tsoukis, … - 2022

We estimate the fiscal (spending) multiplier using quarterly U.S. data, 1986-2017. We define government spending shocks …

Persistent link: https://www.econbiz.de/10013191269

Fiscal stimulus with learning-by-doing

D'Alessandro, Antonello; Fella, Giulio - 2017

Using a structural VAR analysis, we document that an increase in government purchases raises private consumption, total factor productivity (TFP) and the real wage. This poses a puzzle for both neoclassical and New-Keynesian models. We extend a standard New-Keynesian model to allow for skill...

Persistent link: https://www.econbiz.de/10011694749

Sticky wages, monetary policy and fiscal policy multipliers

Dupor, Bill; Li, Rong; Li, Jingchao - 2017

This paper demonstrates how adding nominal wage rigidity to a standard sticky price model can create a mechanism by which increases in government spending cause increases in consumption. The increase in output arising from government purchases puts upward pressure on the price level. At a fixed...

Persistent link: https://www.econbiz.de/10011691001

Regional consumption responses and the aggregate fiscal multiplier

Dupor, Bill; Karabarbounis, Marios; Kudlyak, Marianna; … - 2018

spending by $0.29. We translate the regional consumption responses to an aggregate fiscal multiplier using a multi-region, New … multiplier, a result that distinguishes our incomplete markets model from models with complete markets. The aggregate consumption … multiplier is 0.64, which implies an output multiplier higher than one. The aggregate consumption multiplier is larger than the …

Persistent link: https://www.econbiz.de/10011911427

The cyclical behaviour of government spending for social protection : is the OECD methodology robust?

Arsenev, Aleksandr; Heimberger, Philipp; Schütz, Bernhard - 2023

Spending elasticities measure the reaction of different government spending components to the business cycle. They are important inputs for fiscal forecasts, and they are particularly relevant in the context of European Union (EU) fiscal rules, as elasticity estimates enter the estimation of...

Persistent link: https://www.econbiz.de/10014445966

Normative fiscal policy and growth : some quantitative implications for the Chilean economy

Espino, Emilio; González Rozada, Martín - 2013

This paper explores the qualitative and quantitative implications of optimal taxation in a developing economy when economic growth is endogenously determined. We differentiate this class of economies from a developed economy in two aspects: informal sector is quantitatively significant and...

Persistent link: https://www.econbiz.de/10011303820

Tax expenditure budgets concepts and challenges for implementation

Villela, Luiz Arruda; Lemgruber, Andrea; Jorratt, Michael - 2010

Tax expenditures are generally defined as those government expenditures carried out through tax legislation, regulations, and practices that reduce or defer taxes for some taxpayers. There is a general concern that the tax expenditures negatively affect the budget and tax policies, which in turn...

Persistent link: https://www.econbiz.de/10011294489

Debt and stabilization policy : evidence from a Euro Area FAVAR

Jackson, Laura; Owyang, Michael T.; Zubairy, Sarah - 2017

The Euro-area poses a unique problem in evaluating policy: a currency union with a shared monetary policy and country-specific fiscal policy. Analysis can be further complicated if high levels of public debt affect the performance of stabilization policy. We construct a framework capable of...

Persistent link: https://www.econbiz.de/10011696356

Demand-side economics in times of high debt : the case of the European Union

Köppl-Turyna, Monika; Lorenz, Hanno - 2016

We analyze the effectiveness of an increase in government consumption for stimulating growth for diverse levels of public debt in the European Union. We conclude, that growth rate can be stimulated in the short run by an increase in government consumption but only at low levels of public debt....

Persistent link: https://www.econbiz.de/10011717820

Non-linear e¤ects of government spending shocks in the US : evidence from state-level data

Mumtaz, Haroon; Sunder-Plassmann, Laura - 2017

find moderately strong evidence that for the average state the fiscal multiplier is larger during recessions. However …

Persistent link: https://www.econbiz.de/10011773635