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effect on total GDP. In this setup the spending multiplier shows large long-run effects, considerably stronger than those …
Persistent link: https://www.econbiz.de/10010277384
the fiscal multiplier increases with the elasticity of matching to spending and is also negatively related with the steady … state spending to GDP ratio in the presence of diminishing marginal returns on spending. For large value of the multiplier …
Persistent link: https://www.econbiz.de/10010316798
multiplier; (ii) positive long-run output multipliers are obtained only if the generational turnover effect is dominated by the …
Persistent link: https://www.econbiz.de/10010261412
The conventional wisdom about Keynes's Principle of Effective Demand is that it states something about quantities. It is widely held that the Principle determines the levels of output and employment in a world not governed by Say's Law. This paper argues that the Principle of Effective Demand...
Persistent link: https://www.econbiz.de/10010285937
Abstract This paper conducts an empirical investigation of the effects of temporary versus persistent fiscal policy shocks. Using data from the US I show that short lived fiscal expansions have a positive effect on output and consumption; while persistent fiscal shocks generate negative effects...
Persistent link: https://www.econbiz.de/10010316756
measures emphasize that government spending can stimulate additional private spending the so-called Keynesian multiplier effect …, when stimulus is most needed, may even be negative. Traditional Keynesian multiplier effects only arise in a model that …
Persistent link: https://www.econbiz.de/10010303706
measures, the analysis of fiscal multiplier effects is back on the scientific agenda. The number of empirical studies is … regression analysis to a set of 89 studies on multiplier effects in order to provide a systematic overview of the different … type of fiscal impulse, model class, multiplier calculation method and further control variables. Moreover, we analyse …
Persistent link: https://www.econbiz.de/10010460523
This paper employs fifteen dynamic macroeconomic models maintained within the European System of Central Banks to assess the size of fiscal multipliers in European countries. Using a set of common simulations, we consider transitory and permanent shocks to government expenditures and different...
Persistent link: https://www.econbiz.de/10011506798
government spending shocks, using Bayesian techniques for US data. I find the multiplier for government spending to be 1.12, and …
Persistent link: https://www.econbiz.de/10010279882
government spending multiplier of 1.3 on impact in our preferred specification. Denmark's fixed exchange rate implies that the … effect on output becoming insignificant after around a year. The fiscal multiplier is above 1 only in the first quarter, and … drops to 0.6 one year after the shock. We further demonstrate that the fiscal multiplier is far from constant over time …
Persistent link: https://www.econbiz.de/10010321199