The effects of government spending endogeneity on estimated multipliers in the U.S
Moura, Alban

Fecha: 2015
Resumen: This paper uses an estimated sticky-price model to identify endogenous movements in government consumption in the U. S. economy. Two feedback effects are considered, one originating from the stock of public debt and one from contemporaneous output. The data provide significant statistical evidence in favor of such mechanisms, even though a subsample analysis reveals that their strength may have decreased over time. Monte Carlo simulations assessing a DSGE model with exogenous spending and various identified VARs suggest that failing to account for these feedbacks may induce a severe upward bias in estimated multipliers.
Resumen: The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
Ayudas: European Commission 649396
Derechos: Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original. Creative Commons
Lengua: Anglès
Colección: Barcelona Graduate School of Economics. ADEMU working paper series
Colección: Ademu Working Paper Series ; 15
Documento: Working paper
Materia: Government spending multiplier ; Endogenous fiscal policy ; Structural econometrics

Adreça alternativa: https://hdl.handle.net/10230/27287


27 p, 398.5 KB

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Documentos de investigación > Working papers

 Registro creado el 2018-10-23, última modificación el 2022-07-09



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