scholarly journals Clearing Up the Fiscal Multiplier Morass

2011 ◽  
Author(s):  
Eric Leeper ◽  
Nora Traum ◽  
Todd Walker
Keyword(s):  
Fiscal Multiplier

scholarly journals When is the fiscal multiplier high? A comparison of four business cycle phases

2021 ◽  
pp. 103852
Author(s):  
Travis Berge ◽  
Maarten De Ridder ◽  
Damjan Pfajfar
Keyword(s):  
Business Cycle ◽  
Fiscal Multiplier

Regime dependence of the fiscal multiplier

2012 ◽  
Vol 83 (3) ◽  
pp. 502-522 ◽  
Author(s):  
Stefan Mittnik ◽  
Willi Semmler
Keyword(s):  
Fiscal Multiplier

Imperfect Competition and the Fiscal Multiplier

1996 ◽  
Vol 98 (2) ◽  
pp. 219 ◽  
Author(s):  
Huw Dixon ◽  
Phillip Lawler
Keyword(s):  
Imperfect Competition ◽  
Fiscal Multiplier

Fiskalpolitik und Finanzmärkte: Perspektiven für Forschung und Wirtschaftspolitik

2012 ◽  
Vol 13 (Supplement) ◽  
pp. 13-35
Author(s):  
Gernot Müller
Keyword(s):  
Fiscal Policy ◽  
Financial Markets ◽  
Financial Market ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
New Keynesian ◽  
Sovereign Risk ◽  
Market Conditions ◽  
Fiscal Multiplier ◽  
The Global Financial Crisis

AbstractThe conduct of fiscal policy has been altered considerably in the context of the global financial crisis, that is, at times when financial markets conditions were extraordinary turbulent. Yet financial market conditions determine how fiscal impulses are transmitted through the economy and, eventually, the size of the fiscal multiplier. I develop a comprehensive perspective on how financial market conditions alter the effects of fiscal policy on economic activity within a New Keynesian framework. Drawing on historical as well as systematic considerations, I distinguish a scenario of 1) “normal times” characterized by smoothly operating financial markets, 2) financial markets characterized by tight credit conditions in the private sector and constraints on monetary policy and 3) financial markets, in addition, characterized by high sovereign risk. I argue that the size and even the sign of the multiplier may differ across these scenarios.

scholarly journals Clearing Up the Fiscal Multiplier Morass

2017 ◽  
Vol 107 (8) ◽  
pp. 2409-2454 ◽  
Author(s):  
Eric M. Leeper ◽  
Nora Traum ◽  
Todd B. Walker
Keyword(s):  
Government Spending ◽  
Model Specification ◽  
Monetary Model ◽  
Fiscal Multiplier ◽  
Policy Regimes ◽  
Transmission Mechanisms ◽  
Credible Sets ◽  
Short Run ◽  
Observable Data ◽  
Bayesian Prior

We quantify government spending multipliers in US data using Bayesian prior and posterior analysis of a monetary model with fiscal details and two distinct monetary-fiscal policy regimes. The combination of model specification, observable data, and relatively diffuse priors for some parameters lands posterior estimates in regions of the parameter space that yield fresh perspectives on the transmission mechanisms that underlie government spending multipliers. Short-run output multipliers are comparable across regimes—posterior means around 1.3 on impact—but much larger after 10 years under passive money/active fiscal than under active money/passive fiscal—90 percent credible sets of [1.5, 1.9] versus [0.1, 0.4] in present value, when estimated from 1955 to 2016. (JEL E52, E62, E63, H50)

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