Fiscal multipliers, expectations and learning in a macroeconomic agent‐based model.

This paper evaluates the government expenditure multiplier and the influence of agents' expectations and consumption choices thereupon in a pre‐existing estimated macroeconomic agent‐based model. If the simple consumption heuristic of the baseline model is replaced by inter‐temporal optimization sub...

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Detalles Bibliográficos
Publicado en:Economic Inquiry Vol. 60; no. 4; pp. 1704 - 1730
Formato: Artículo
Publicado: Wiley-Blackwell Oct2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      tig:
        atl: Fiscal multipliers, expectations and learning in a macroeconomic agent‐based model.
      aug:
      su:
        Consumption (Economics)
        Public spending
        Income
        Budget
        Macroeconomic models
      sug:
        subj:
          Consumption (Economics)
          Public spending
          Income
          Budget
          Public Finance Activities
          Macroeconomic models
      keyword:
        agent‐based models
        expectations
        fiscal policy
        learning
        agent‐based models
        expectations
        fiscal policy
        learning
      ab: This paper evaluates the government expenditure multiplier and the influence of agents' expectations and consumption choices thereupon in a pre‐existing estimated macroeconomic agent‐based model. If the simple consumption heuristic of the baseline model is replaced by inter‐temporal optimization subject to a budget constraint based on agents' estimations of future income, the multiplier becomes significantly smaller. When agents' beliefs about the effects of expenditure shocks are explicitly introduced, they can strongly increase or decrease the multiplier. If agents are allowed learn about the effects of government expenditure on their income from repeated shocks, they are able to correctly predict these effects.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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