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dc.contributor.authorStrulik, Holgeren_US
dc.contributor.authorTrimborn, Timoen_US
dc.date.accessioned2011-04-01en_US
dc.date.accessioned2012-11-06T15:27:14Z-
dc.date.available2012-11-06T15:27:14Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/66015-
dc.description.abstractThe output multiplier turns negative before a deficit spending program expires. We show the generality of this unpleasant finding for the standard real business cycle model. We then calibrate an extended model for the US and demonstrate how fiscal stimulus slows down economic recovery from recession in the medium-run. We discuss the slowdown from recovery w.r.t. alternative assumptions about the size and persistence of the initial shock (severity of the recession), the assumed power of the impact multiplier, and the scale and duration of the stimulus program. We also show that results are quantitatively very similar independent from whether a recession was caused by an efficiency wedge (input-financing frictions) or a labor wedge (labor market frictions). Capital stock and output are always below their laissez-faire level of recovery when fiscal stimulus expires.en_US
dc.language.isoengen_US
dc.publisherWirtschaftswiss. Fak., Leibniz Univ. Hannoveren_US
dc.relation.ispartofseriesDiscussion Paper, Wirtschaftswissenschaftliche Fakultät, Leibniz Universität Hannover 466en_US
dc.subject.jelE60en_US
dc.subject.jelH30en_US
dc.subject.jelH50en_US
dc.subject.jelO40en_US
dc.subject.ddc330en_US
dc.subject.keywordFiscal stimulusen_US
dc.subject.keywordgovernment spendingen_US
dc.subject.keywordoutput multiplieren_US
dc.subject.keywordeconomic recoveryen_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwÖffentliche Ausgabenen_US
dc.subject.stwMultiplikatoren_US
dc.subject.stwKonjunkturen_US
dc.subject.stwReal Business Cycleen_US
dc.subject.stwTheorieen_US
dc.titleThe dark side of fiscal stimulusen_US
dc.typeWorking Paperen_US
dc.identifier.ppn655206507en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Universität Hannover

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