EconPapers    
Economics at your fingertips  
 

Government Spending Multipliers in Good Times and in Bad: Evidence from US Historical Data

Valerie Ramey () and Sarah Zubairy ()

Journal of Political Economy, 2018, vol. 126, issue 2, 850 - 901

Abstract: We investigate whether US government spending multipliers are higher during periods of economic slack or when interest rates are near the zero lower bound. Using new quarterly historical US data covering multiple large wars and deep recessions, we estimate multipliers that are below unity irrespective of the amount of slack in the economy. These results are robust to two leading identification schemes, two different estimation methodologies, and many alternative specifications. In contrast, the results are more mixed for the zero lower bound state, with a few specifications implying multipliers as high as 1.5.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1086/696277 (application/pdf)
http://dx.doi.org/10.1086/696277 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Government Spending Multipliers in Good Times and in Bad: Evidence from U.S. Historical Data (2014) 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: https://EconPapers.repec.org/RePEc:ucp:jpolec:doi:10.1086/696277

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2019-11-13
Handle: RePEc:ucp:jpolec:doi:10.1086/696277