Effects of Fiscal Stimulus in Structural Models
Günter Coenen (),
Charles Freedman (),
Davide Furceri (),
Michael Kumhof (),
Douglas Laxton (),
Annabelle Mourougane (),
Dirk Muir (),
Carlos de Resende,
Stephen Snudden (),
Mathias Trabandt () and
Jan in 't Veld
American Economic Journal: Macroeconomics, 2012, vol. 4, issue 1, 22-68
The paper subjects seven structural DSGE models, all used heavily by policymaking institutions, to discretionary fiscal stimulus shocks using seven different fiscal instruments, and compares the results to those of two prominent academic DSGE models. There is considerable agreement across models on both the absolute and relative sizes of different types of fiscal multipliers. The size of many multipliers is large, particularly for spending and targeted transfers. Fiscal policy is most effective if it has moderate persistence and if monetary policy is accommodative. Permanently higher spending or deficits imply significantly lower initial multipliers. (JEL E12, E13, E52, E62)
JEL-codes: E12 E13 E52 E62 (search for similar items in EconPapers)
Note: DOI: 10.1257/mac.4.1.22
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Working Paper: Effects of Fiscal Stimulus in Structural Models (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:aea:aejmac:v:4:y:2012:i:1:p:22-68
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