Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/66015 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorStrulik, Holgeren
dc.contributor.authorTrimborn, Timoen
dc.date.accessioned2011-04-01-
dc.date.accessioned2012-11-06T15:27:14Z-
dc.date.available2012-11-06T15:27:14Z-
dc.date.issued2011-
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
dc.language.isoengen
dc.publisher|aLeibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät |cHannoveren
dc.relation.ispartofseries|aDiskussionsbeitrag |x466en
dc.subject.jelE60en
dc.subject.jelH30en
dc.subject.jelH50en
dc.subject.jelO40en
dc.subject.ddc330en
dc.subject.keywordFiscal stimulusen
dc.subject.keywordgovernment spendingen
dc.subject.keywordoutput multiplieren
dc.subject.keywordeconomic recoveryen
dc.subject.stwFinanzpolitiken
dc.subject.stwÖffentliche Ausgabenen
dc.subject.stwMultiplikatoren
dc.subject.stwKonjunkturen
dc.subject.stwReal Business Cycleen
dc.subject.stwTheorieen
dc.titleThe dark side of fiscal stimulus-
dc.typeWorking Paperen
dc.identifier.ppn655206507en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:han:dpaper:dp-466en

Files in This Item:
File
Size
379.61 kB





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