Economics at your fingertips  

An analytical characterization of noisy fiscal policy

Patrick Fève, Kass-Hanna, Tannous and Mario Pietrunti ()

Economics Letters, 2016, vol. 148, issue C, 76-79

Abstract: This paper provides an analytical characterization of the effects of noisy news shocks on fiscal policy. We consider a small-scale Dynamic Stochastic General Equilibrium (DSGE) model with capital accumulation and endogenous labor supply and show that noise dampens the propagation of anticipated fiscal policy over the business cycle, thus reducing the fiscal multiplier.

Keywords: Government spending shocks; Expected shocks; Noisy information; DSGE models (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: An Analytical Characterization of Noisy Fiscal Policy (2016) Downloads
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:

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-08-09
Handle: RePEc:eee:ecolet:v:148:y:2016:i:c:p:76-79