EconStor >
Verein für Socialpolitik >
Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/37312
  
Title:Fiscal Expenditures and Unemployment: A DSGE Perspective PDF Logo
Authors:Mayer, Eric
Moyen, Stéphane
Stähler, Nikolai
Issue Date:2010
Series/Report no.:Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Fiscal Policy and the Business Cycle E6-V3
Abstract:We investigate the behavior of the unemployment rate after a government expenditure shock and present evidence that the group of asset-holding households reacts very different from the group of liquidity-constrained consumers. Our findings suggest that the unemployment rate is likely to decrease for assetholding households while it increases among liquidity-constrained consumers. The main driver for our results is the marginal utility of wealth which moves in opposite directions for the different types of households after a government expenditure shock. We find that the size of the fiscal (unemployment) multiplier increases with i) highly sticky prices ii) high degrees of risk aversion iii) low real wage elasticities iv) high replacement rates and v) debt financed expenditures.
Subjects:search and matching
government shocks
unemployment
JEL:E32
E62
H61
Document Type:Conference Paper
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

Files in This Item:
File Description SizeFormat
VfS_2010_pid_186.pdf220.93 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/37312

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.