Toward a low carbon growth in Mexico: is a double dividend possible ? A dynamic general equilibrium assessment
Mauro Napoletano (),
Andrea Roventini and
Jean Luc Gaffard
Additional contact information
Andrea Roventini: OFCE-SciencesPo & Skema Business School
Jean Luc Gaffard: OFCE Sciences Po & Skema Business School
No 2015-25, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)
We build an agent-based model populated by households with heterogenous and time-varying nancial conditions in order to study how scal multipliers can change over the business cycle and are a ected by the state of credit markets. We nd that deficit-spending scal policy dampens the e ect of bankruptcy shocks and lowers their persistence. Moreover, the size and dynamics of government spending multipli- ers are related to the degree and persistence of credit rationing in the economy. On the contrary, in presence of balanced-budget rules, output permanently falls below pre-shock levels and the ensuing multipliers fall below one and are much lower than the ones emerging from the deficit-spending policy. Finally, we show that di erent conditions in the credit market significantly a ect the size and the evolution of fiscal multipliers
New Economics Papers: this item is included in nep-dge, nep-env and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:1525
Access Statistics for this paper
More papers in Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE) Contact information at EDIRC.
Bibliographic data for series maintained by Francesco Saraceno ().