Fève, Patrick and Sahuc, Jean-Guillaume (2015) On the Size of the Government Spending Multiplier in the Euro Area. Oxford Economic Papers, 67 (3). pp. 531-552.

Abstract

This article addresses the existence of a wide range of estimated government spending multipliers in a dynamic stochastic general equilibrium model of the euro area. Our estimation results and counterfactual exercises provide evidence that omitting the interactions of key ingredients at the estimation stage (such as Edgeworth complementarity/subtitutability between private consumption and government expenditures, endogenous government spending policy and general time nonseparable preferences) paves the way for potentially large biases. We argue that uncertainty on the quantitative assessments of fiscal programmes could partly originate from these biases.

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• On the Size of the Government Spending Multiplier in the Euro Area. (deposited 09 Jul 2014 17:35)
  • On the Size of the Government Spending Multiplier in the Euro Area. (deposited 21 Sep 2015 13:08) [Currently Displayed]