DESPERATE TIMES CALL FOR DESPERATE MEASURES: GOVERNMENT SPENDING MULTIPLIERS IN HARD TIMES.
We investigate state‐dependent effects of fiscal multipliers and allow for endogenous sample splitting to determine whether the U.S. economy is in a slack state. When the endogenized slack state is estimated as the period of the unemployment rate higher than about 12%, the estimated cumulative multi...
| Publicado en: | Economic Inquiry Vol. 58; no. 4; pp. 1949 - 1958 |
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| Autores principales: | , , , |
| Formato: | Artículo |
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Wiley-Blackwell
Oct2020
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=145974832&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 145974832 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Oct2020 vid: 58 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 145974832 10.1111/ecin.12919 ppf: 1949 ppct: 9 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 624KB tig: atl: DESPERATE TIMES CALL FOR DESPERATE MEASURES: GOVERNMENT SPENDING MULTIPLIERS IN HARD TIMES. aug: au: Lee, Sokbae Liao, Yuan Seo, Myung Hwan Shin, Youngki affil: Department of Economics, Columbia University, New York NY 10027, USA Research Staff, Institute for Fiscal Studies, London WC1E 7AE, UK Department of Economics, Rutgers University, New Brunswick NJ 08901, USA Department of Economics, Seoul National University, Seoul 08826,, Republic of Korea Department of Economics, McMaster University, Hamilton ON L8S 4L8,, Canada su: United States Fiscal policy Economics Analog multipliers Employment statistics COVID-19 sug: subj: Fiscal policy Economics United States Public Finance Activities Analog multipliers Employment statistics COVID-19 ab: We investigate state‐dependent effects of fiscal multipliers and allow for endogenous sample splitting to determine whether the U.S. economy is in a slack state. When the endogenized slack state is estimated as the period of the unemployment rate higher than about 12%, the estimated cumulative multipliers are significantly larger during slack periods than nonslack periods and are above unity. We also examine the possibility of time‐varying regimes of slackness and find that our empirical results are robust under a more flexible framework. Our estimation results point out the importance of the heterogenous effects of fiscal policy and shed light on the prospect of fiscal policy in response to economic shocks from the current COVID‐19 pandemic. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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