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Dupaigne, Martial
and Fève, Patrick
(2016)
Persistent Government Spending and Fiscal Multipliers: the Investment-Channel.
European Economic Review, vol. 89.
pp. 425-453.
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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: | Article |
|---|---|
| Language: | English |
| Date: | October 2016 |
| Refereed: | Yes |
| 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) |
| Site: | UT1 |
| Date Deposited: | 28 Sep 2016 07:37 |
| Last Modified: | 02 Apr 2021 15:54 |
| OAI Identifier: | oai:tse-fr.eu:31004 |
| URI: | https://publications.ut-capitole.fr/id/eprint/22393 |
Available Versions of this Item
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Persistent Government Spending and Fiscal Multipliers: the Investment-Channel. (deposited 30 May 2016 10:48)
- Persistent Government Spending and Fiscal Multipliers: the Investment-Channel. (deposited 28 Sep 2016 07:37) [Currently Displayed]
