Ten Years after the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research?

Valerie Ramey

Journal of Economic Perspectives, 2019, vol. 33, issue 2, 89-114

Abstract: This paper takes stock of what we have learned from the "Renaissance" in fiscal research in the ten years since the financial crisis. I first discuss the new innovations in methodology and various strengths and weaknesses of the main approaches to estimating fiscal multipliers. Reviewing the estimates, I come to the surprising conclusion that the bulk of the estimates for average spending and tax change multipliers lie in a fairly narrow range, 0.6 to 1 for spending multipliers and -2 to -3 for tax change multipliers. However, I identify economic circumstances in which multipliers lie outside those ranges. Finally, I review the debate on whether multipliers were higher for the 2009 Obama stimulus spending in the United States or for fiscal consolidations in Europe.

JEL-codes: E32 E43 E44 E62 G01 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/jep.33.2.89
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (250)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/jep.33.2.89 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... pVme_AiVTX5MkB698qh8 (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... XLwrczUL4x28_SzwJ5G6 (application/zip)

Related works:
Working Paper: Ten Years After the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research? (2019)
Working Paper: Ten Years after the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research? (2019)
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:aea:jecper:v:33:y:2019:i:2:p:89-114

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

Journal of Economic Perspectives is currently edited by Enrico Moretti

More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().