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This study aims to measure the impact of the share of non-Ricardian households on fiscal multipliers. We show that the share of non-Ricardian households in Hungary increased significantly after crisis began and explain why the plausible reason for this increase is the higher level of liquidity...
Persistent link: https://www.econbiz.de/10012123344
We document that the interest rate response to fiscal stimulus (IRRF) is lower in countries with high inequality or high household debt. To interpret this evidence we develop a model in which households take on debt to maintain a consumption threshold (saving constraint). Now debt-burdened,...
Persistent link: https://www.econbiz.de/10012849875
We document that the interest rate response to fiscal stimulus (IRRF) is lower in countries with high inequality or high household debt. To interpret this evidence we develop a model in which households take on debt to maintain a consumption threshold (saving constraint). Now debt-burdened,...
Persistent link: https://www.econbiz.de/10012840260
consumption and the government spending multiplier, given that consumption and labor are somewhat complementary. -- Trend growth … ; price and wage staggering ; government spending multiplier …
Persistent link: https://www.econbiz.de/10008821669
This paper evaluates a novel form of fiscal stimulus: a temporary cut in the rate of Value Added Tax (VAT). In December 2008, the UK cut the standard rate of VAT by 2.5 percentage points for 13 months in an effort to stimulate spending. We estimate the effect of the cut on prices and spending...
Persistent link: https://www.econbiz.de/10010381367
This paper shows that the fiscal multiplier for purchases of durable and investment goods is very small - much smaller … than the multiplier for nondurable goods. Standard models predict small durables multipliers because private sector …
Persistent link: https://www.econbiz.de/10011573302
We estimate state-dependent government spending multipliers for the United States. We use a Factor-Augmented Interacted Vector Autoregression (FAIVAR) model. This allows us to capture the time-varying monetary policy characteristics including the recent zero interest rate lower bound (ZLB)...
Persistent link: https://www.econbiz.de/10012209159
Motivated by the apparent failure of the credit multiplier mechanism (CM) to deliver amplification in DSGE models, we …
Persistent link: https://www.econbiz.de/10009762039
This paper investigates how government spending multipliers depend on the distribution of taxes across households. We exploit historical variations in the financing of spending in the U.S. since 1913 to show that multipliers are positive only when financed with more progressive taxes, and zero...
Persistent link: https://www.econbiz.de/10011917433
Persistent link: https://www.econbiz.de/10012503208