Fiscal spending multipliers over the household leverage cycle
Yükleniyor...
Tarih
2022
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Elsevier
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
This paper investigates household leverage-dependent fiscal policy effects in a two-agent New Keynesian DSGE model with occasionally binding borrowing constraints. Our model successfully replicates empirical evidence showing that fiscal policy’s effectiveness differs significantly across the household leverage cycle. Fiscal multipliers are persistently above unity when government spending rises at the peak of the household leverage cycle. In contrast, increases in government spending at the trough of the household leverage cycle imply fiscal multipliers below unity. We test the model’s predictions on post-WWII U.S. data.
Açıklama
Anahtar Kelimeler
Occasionally binding constraints, Government spending multiplier, Household leverage cycle, State-dependence
Kaynak
European Economic Review 1
WoS Q Değeri
Scopus Q Değeri
Q1
Cilt
141
Sayı
Künye
Polattimur, H., Klein, Mathias., Winkler, R. (2022). Fiscal spending multipliers over the household leverage cycle. 141, 1-19.
