NDLI: Regime-Dependent Fiscal Multipliers in the United States

Content Provider	Springer Nature Link
Author	Dufrét, Gilles Jambois, Aurélia Jambois, Laurine Khayat, Guillaume
Copyright Year	2016
Abstract	This paper proposes a regime-dependent model to estimate fiscal multipliers in the US. Output, consumption and investment are assumed to respond to tax and spending changes in a nonlinear manner. Fiscal multipliers are time-varying because their size and sign depend upon the state of the economy (upturns and downturns). Keynesian effects appear essentially during downturns, while anti-Keynesian effects are observed during expansions. Transfer payments contributes to a higher private consumption when they are given to consumers in bad times. Reducing taxes boosts consumption in good times. Investment responds positively to lower taxes during downturns, but negatively in the upturn regime. Our results thus suggest that Keynesian effects have been associated to expansionary policies during recessions, while anti-Keynesian effects were observed during expansions illustrating situations of expansionary fiscal consolidation. The effectiveness of fiscal positive impulses increases in downturns relative to upturns. A corollary is therefore that austerity measures during recessions would have detrimental effects on the GDP and its components.
Starting Page	923
Ending Page	944
Page Count	22
File Format	PDF
ISSN	09237992
Journal	Open Economies Review
Volume Number	27
Issue Number	5
e-ISSN	1573708X
Language	English
Publisher	Springer US
Publisher Date	2016-08-05
Publisher Place	New York
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Fiscal multipliers Regime-dependent Keynesian effects Anti-Keynesian effects International Economics Development Economics European Integration Macroeconomics/Monetary Economics//Financial Economics Economic Policy
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Financial Integration and Fiscal Policy

The Performance of Simple Fiscal Policy Rules in Monetary Union

International Spillovers from U.S. Fiscal Policy Shocks

Financial Frictions and the Fiscal Theory of Price Level Determination

Modeling Sterilized Interventions and Balance Sheet Effects of Monetary Policy in a New-Keynesian Framework

Budgetary-Neutral Fiscal Policy Rules and External Adjustment

Fiscal flows in Europe: The redistributive effects of the EU budget

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

The future of the European Economic and Monetary Union: European monetary and fiscal policies

Regime-Dependent Fiscal Multipliers in the United States

Similar Documents

Financial Integration and Fiscal Policy

The Performance of Simple Fiscal Policy Rules in Monetary Union

International Spillovers from U.S. Fiscal Policy Shocks

Financial Frictions and the Fiscal Theory of Price Level Determination

Modeling Sterilized Interventions and Balance Sheet Effects of Monetary Policy in a New-Keynesian Framework

Budgetary-Neutral Fiscal Policy Rules and External Adjustment

Fiscal flows in Europe: The redistributive effects of the EU budget

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

The future of the European Economic and Monetary Union: European monetary and fiscal policies

Regime-Dependent Fiscal Multipliers in the United States