0000000000164050

AUTHOR

Charles Freedman

showing 2 related works from this author

Effects of Fiscal Stimulus in Structural Models

2010

The paper assesses, using seven structural models used heavily by policymaking institutions, the effectiveness of temporary fiscal stimulus. Models can, more easily than empirical studies, account for differences between fiscal instruments, for differences between structural characteristics of the economy, and for monetary-fiscal policy interactions. Findings are: (i) There is substantial agreement across models on the sizes of fiscal multipliers. (ii) The sizes of spending and targeted transfers multipliers are large. (iii) Fiscal policy is most effective if it has some persistence and if monetary policy accommodates it. (iv) The perception of permanent fiscal stimulus leads to significant…

InflationWestern hemisphereStimulus (economics)media_common.quotation_subjectjel:E62Monetary policyMonetary economicsjel:E52jel:E12Fiscal policyjel:E13Economics Econometrics and Finance (all)2001 Economics Econometrics and Finance (miscellaneous)Empirical researchGeneral [Fiscal stimulus;Fiscal policy;Fiscal Multipliers Government Deficits inflation real interest rate aggregate demand Open Economy Macroeconomics International Policy Coordination and Transmission Fiscal Policies and Behavior of Economic Agents]PerceptionDynamic stochastic general equilibriumEconomicsGeneral Earth and Planetary SciencesReal interest rateGeneral Economics Econometrics and FinanceAggregate demandGeneral Environmental Sciencemedia_common
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Replication data for: Effects of Fiscal Stimulus in Structural Models

2012

The paper subjects seven structural DSGE models, all used heavily by policymaking institutions, to discretionary fiscal stimulus shocks using seven different fiscal instruments, and compares the results to those of two prominent academic DSGE models. There is considerable agreement across models on both the absolute and relative sizes of different types of fiscal multipliers. The size of many multipliers is large, particularly for spending and targeted transfers. Fiscal policy is most effective if it has moderate persistence and if monetary policy is accommodative. Permanently higher spending or deficits imply significantly lower initial multipliers. (JEL E12, E13, E52, E62)

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