Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284335 
Year of Publication: 
2023
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 20 [Issue:] 2 [Year:] 2023 [Pages:] 338-355
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
This paper asks whether the post-Keynesian or New Keynesian paradigm provides a more realistic description of the effects of fiscal policy on output and consumption. I establish some macro and microeconomic stylized facts on fiscal multipliers and marginal propensities to consume based on the extensive empirical literature. I compare them to basic and extended modelling approaches within the two traditions. The picture is mixed and points to shortcomings in both paradigms. I outline the elements they could learn from each other as well as from some other strands in the literature to create a coherent and convincing Keynesian macro-micro framework of fiscal policy modelling.
Subjects: 
macroeconomics
fiscal policy
history of economic thought
multiplier
marginal propensity to consume
JEL: 
D10
E20
E60
H30
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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