Dupaigne, Martial and Fève, Patrick (2016) Persistent Government Spending and Fiscal Multipliers: the Investment-Channel. TSE Working Paper, n. 16-655, Toulouse

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Abstract

This paper inspects the mechanism shaping government spending multipliers in various smallscale DSGE setups with endogenous labor supply and capital accumulation. We analytically characterize the short-run investment multiplier, which in equilibrium can be either positive or negative. The investment multiplier increases with the persistence of the exogenous government spending process. The response of investment to government spending shocks strongly affects short-run multipliers on output and consumption.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2016
Place of Publication: Toulouse
Uncontrolled Keywords: Government Spending Multipliers, DSGE models, Capital Accumulation, Labor Supply, Market Imperfections
JEL Classification: E32 - Business Fluctuations; Cycles
E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 30 May 2016 10:48
Last Modified: 02 Apr 2021 15:53
OAI Identifier: oai:tse-fr.eu:30483
URI: https://publications.ut-capitole.fr/id/eprint/22018

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