Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153524
Authors: 
Cogan, John F.
Cwik, Tobias
Taylor, John B.
Wieland, Volker
Year of Publication: 
2009
Series/Report no.: 
ECB Working Paper 1090
Abstract: 
Renewed interest in fiscal policy has increased the use of quantitative models to evaluate policy. Because of modelling uncertainty, it is essential that policy evaluations be robust to alternative assumptions. We find that models currently being used in practice to evaluate fiscal policy stimulus proposals are not robust. Government spending multipliers in an alternative empirically-estimated and widely-cited new Keynesian model are much smaller than in these old Keynesian models; the estimated stimulus is extremely small with GDP and employment effects only one-sixth as large.
Subjects: 
fiscal multiplier
Fiscal Stimulus
government spending
Macroeconomic Modeling
New Keynesian Model
JEL: 
C52
E62
Document Type: 
Working Paper

Files in This Item:
File
Size
734.36 kB





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