The fiscal multiplier: positive or negative?

Juha Tervala ()

No 54, Discussion Papers from Aboa Centre for Economics

Abstract: This study examines whether the fiscal multiplier can be negative for certain types of government spending. The key result is that the fiscal multiplier can be negative if there is a high degree of substitutability between private and government consumption and government consumption is complementary to leisure.

Keywords: fiscal policy; fiscal multiplier; effectiveness of fiscal policy (search for similar items in EconPapers)
JEL-codes: E62 H31 H42 (search for similar items in EconPapers)
Pages: 12
Date: 2009-09
New Economics Papers: this item is included in nep-cba and nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ace-economics.fi/kuvat/dp54.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tkk:dpaper:dp54

Access Statistics for this paper

More papers in Discussion Papers from Aboa Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by Susmita Baulia ().