We find that under both the financing scenarios public investment crowds in private investment with long-run cumulative multiplier equal to 1.64 and 1.30, respectively. First, real output under both options also witnesses an increase in the long run with cumulative multipliers equal to 3.48 and ...
Three Essays on Fiscal Policy and Macroeconomic Fluctuations Archival abstract submitted. MA Schurin - 《Faseb Journal Official Publication of the Federation of American Societies for Experimental Biology》 被引量: 7发表: 2013年 Government investment fiscal multipliers: evidence from Euro-area countries ...
The standard view of macro is that there are a set of monetary and fiscal policy tools that affect the broader macroeconomy with “long and variable lags.” The transmission mechanism lies in some sort of “black box” that is poorly understood. So policy actions go into thismysterious black ...
The multipliers below represent some of our policy simulations. The peak of fiscal multiplier, i.e., the effect of government investments on GDP, is about 1.1 in Japan. The effect of income tax reduction is smaller due to its leak to household savings. Monetary policy takes some time before...
In a few short years in the latter half of the 1980s Ireland moved from a position of near-bankruptcy in the fiscal accounts to near balance. The improvement was sustained: having jumped to over 120 per cent in 1987, a decade later the debt-to-GDP ratio
The first half of the paper examines disagreement among the models on the signs of policy multipliers, and how such disagreement compares to the ambiguities appearing in the theoretical literature. There turns out to be relatively little disagreement as to the effects on output, prices and the ...
Third, I introduce some preliminary results to extend the MeMo-It ability to give relevant policy answers: my example is about the interaction of financial markets behaviors and fiscal multipliers, and it tackles the issue of controlling the ratio of public debt on GDP in the long run.Maria ...
Fiscal multipliersincome and wealth effectsnews shocksIn business-cycle, macro models the elasticity of intertemporal substitution (EIS) governs the economy's response to demand shocks and policy changes ("multipliers"). With general non-separable preferences, the EIS is determined by consumption-hours...
omitted variables bias; total derivatives; choosing between macro models; global glut of savings; Keynesian model; government multipliers; money supply multipliers; export multipliers; production expanding investment; investment to own or rent1. Introduction Cogan et al. (2010) dramatically shows that a...