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dc.contributor.authorZubairy, Sarahen_US
dc.date.accessioned2010-11-23en_US
dc.date.accessioned2011-12-15T12:55:55Z-
dc.date.available2011-12-15T12:55:55Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/53791-
dc.description.abstractThis paper contributes to the debate on fiscal multipliers, in the context of a structural model. I estimate a micro-founded dynamic stochastic general equilibrium model, that features a rich fiscal policy block and a transmission mechanism for government spending shocks, using Bayesian techniques for US data. I find the multiplier for government spending to be 1.12, and the maximum impact is when the spending shock hits the economy. In addition, the estimated model predicts a positive but small response of private consumption to increased government spending. The multipliers for labor and capital tax on impact are 0.13 and 0.33, respectively. The effects of tax cuts, on the other hand, take time to build, and exceed the stimulative effects of higher spending at horizons of 12-20 quarters. The expansionary effects of tax cuts are primarily driven by the response of investment. I carry out several counterfactual exercises to show how alternative financing methods and expected monetary policy have consequences for the size of fiscal multipliers. I also simulate the impact of the American Recovery and Reinvestment Act of 2009 in the estimated model.en_US
dc.language.isoengen_US
dc.publisherBank of Canada Ottawaen_US
dc.relation.ispartofseriesBank of Canada Working Paper 2010,30en_US
dc.subject.jelC11en_US
dc.subject.jelE32en_US
dc.subject.jelE62en_US
dc.subject.jelH30en_US
dc.subject.ddc330en_US
dc.subject.keywordFiscal policyen_US
dc.subject.keywordEconomic modelsen_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwÖffentliche Ausgabenen_US
dc.subject.stwMultiplikatoren_US
dc.subject.stwKonsumen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwUSAen_US
dc.titleOn fiscal multipliers: Estimates from a medium scale DSGE modelen_US
dc.typeWorking Paperen_US
dc.identifier.ppn640645062en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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