Canzoneri, Matthew; Collard, Fabrice; Dellas, Harris; Diba, Behzad (May 2012). Fiscal Multipliers in Recessions (Discussion Papers 12-04). Bern: Department of Economics
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The Great Recession, and the fiscal response to it, has revived interest in the size of fiscal multipliers. Standard business cycle models have difficulties generating multipliers greater than one. And they also fail to produce any significant asymmetry in the size of the multipliers over the business cycle. In this paper we employ a variant of the Curdia–Woodford model of costly financial intermediation to show that fiscal multipliers are strongly countercyclical. In particular, they can take values exceeding two during recessions, declining to values below one during expansions.
Item Type: |
Working Paper |
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Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Collard, Fabrice, Dellas, Harris, Diba, Behzad Tabatabai |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Series: |
Discussion Papers |
Publisher: |
Department of Economics |
Language: |
English |
Submitter: |
Lars Tschannen |
Date Deposited: |
27 Oct 2020 16:36 |
Last Modified: |
05 Dec 2022 15:39 |
JEL Classification: |
E32, E62, H3 |
BORIS DOI: |
10.7892/boris.145756 |
URI: |
https://boris.unibe.ch/id/eprint/145756 |
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