Why Are Keynesian Multipliers Larger in Hard Times? A Palley-Aftalion-Pasinetti Explanation

Sebastien Charles, Thomas Dallery and Jonathan Marie

Post-Print from HAL

Abstract: We use the AMECO database to confirm that textbook multipliers are nearly always greater than one and that they increase during recessions. Propensity to import falls in recessions through the combined effects of the amplified fall in investment (Aftalion) and the high import content of investment (Palley). A change in saving behavior (Pasinetti) may also raise the multiplier. These findings strongly support the need for countercyclical fiscal policies during recessions.

Keywords: Fiscal multipliers; recession; globalization; import content; investment accelerator (search for similar items in EconPapers)
Date: 2018-04-30
Note: View the original document on HAL open archive server: https://hal.science/hal-01785867
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Review of Radical Political Economics, 2018, 50 (4), pp.736-756. ⟨10.1177/0486613417722527⟩

Downloads: (external link)
https://hal.science/hal-01785867/document (application/pdf)

Related works:
Journal Article: Why Are Keynesian Multipliers Larger in Hard Times? A Palley-Aftalion-Pasinetti Explanation (2018)
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:hal:journl:hal-01785867

DOI: 10.1177/0486613417722527

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().