Please use this identifier to cite or link to this item:
https://hdl.handle.net/10419/53791
Full metadata record
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Zubairy, Sarah | en |
dc.date.accessioned | 2010-11-23 | - |
dc.date.accessioned | 2011-12-15T12:55:55Z | - |
dc.date.available | 2011-12-15T12:55:55Z | - |
dc.date.issued | 2010 | - |
dc.identifier.pi | doi:10.34989/swp-2010-30 | en |
dc.identifier.uri | http://hdl.handle.net/10419/53791 | - |
dc.description.abstract | This paper contributes to the debate on fiscal multipliers, in the context of a structural model. I estimate a micro-founded dynamic stochastic general equilibrium model, that features a rich fiscal policy block and a transmission mechanism for government spending shocks, using Bayesian techniques for US data. I find the multiplier for government spending to be 1.12, and the maximum impact is when the spending shock hits the economy. In addition, the estimated model predicts a positive but small response of private consumption to increased government spending. The multipliers for labor and capital tax on impact are 0.13 and 0.33, respectively. The effects of tax cuts, on the other hand, take time to build, and exceed the stimulative effects of higher spending at horizons of 12-20 quarters. The expansionary effects of tax cuts are primarily driven by the response of investment. I carry out several counterfactual exercises to show how alternative financing methods and expected monetary policy have consequences for the size of fiscal multipliers. I also simulate the impact of the American Recovery and Reinvestment Act of 2009 in the estimated model. | en |
dc.language.iso | eng | en |
dc.publisher | |aBank of Canada |cOttawa | en |
dc.relation.ispartofseries | |aBank of Canada Working Paper |x2010-30 | en |
dc.subject.jel | C11 | en |
dc.subject.jel | E32 | en |
dc.subject.jel | E62 | en |
dc.subject.jel | H30 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Fiscal policy | en |
dc.subject.keyword | Economic models | en |
dc.subject.stw | Finanzpolitik | en |
dc.subject.stw | Öffentliche Ausgaben | en |
dc.subject.stw | Multiplikator | en |
dc.subject.stw | Konsum | en |
dc.subject.stw | Dynamisches Gleichgewicht | en |
dc.subject.stw | USA | en |
dc.title | On fiscal multipliers: Estimates from a medium scale DSGE model | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 640645062 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:bca:bocawp:10-30 | en |
Files in This Item:
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.