Are the effects of fiscal changes different in times of crisis and non crisis? The French case

Carine Bouthevillain and Gilles Dufrénot ()

Revue d'économie politique, 2011, vol. 121, issue 3, 371-407

Abstract: This paper shows that the impact of changes in budgetary variables on real GDP, investment, consumption and employment varies in sign and magnitude in times of crisis and non-crisis. To this end, a regime-switching process is embedded in standard macroeconomic equations in order to take into account different budgetary regimes. We find evidence of asymmetric effects for both the multiplier of government expenditure and the fiscal multiplier, with differing effects during the phases of crisis and non-crisis depending upon the level of debt, of the unemployment rate, of the outputgap.

Keywords: Fiscal policy; Markov-switching; Crisis (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (13)

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Working Paper: Are the effects of fiscal changes different in times of crisis and non-crisis? The French Case (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cai:repdal:redp_213_0371

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