TY - JOUR
T1 - Effects of fiscal stimulus in structural models
AU - Furceri, Davide
AU - Lalonde, René
AU - Muir, Dirk
AU - Mursula, Susanna
AU - Trabandt, Mathias
AU - Snudden, Stephen
AU - De Resende, Carlos
AU - Roeger, Werner
AU - Lindé, Jesper
AU - Laxton, Douglas
AU - In'T Veld, Jan
AU - Roberts, John
AU - Kumhof, Michael
AU - Coenen, Günter
AU - Freedman, Charles
AU - Erceg, Christopher J.
AU - Mourougane, Annabelle
PY - 2012
Y1 - 2012
N2 - The paper subjects seven structural DSGE models, all used heavily by policymaking institutions, to discretionary fiscal stimulus shocks using seven different fiscal instruments, and compares the results to those of two prominent academic DSGE models. There is considerable agreement across models on both the absolute and relative sizes of different types of fiscal multipliers. The size of many multipliers is large, particularly for spending and targeted transfers. Fiscal policy is most effective if it has moderate persistence and if monetary policy is accommodative. Permanently higher spending or deficits imply significantly lower initial multipliers.
AB - The paper subjects seven structural DSGE models, all used heavily by policymaking institutions, to discretionary fiscal stimulus shocks using seven different fiscal instruments, and compares the results to those of two prominent academic DSGE models. There is considerable agreement across models on both the absolute and relative sizes of different types of fiscal multipliers. The size of many multipliers is large, particularly for spending and targeted transfers. Fiscal policy is most effective if it has moderate persistence and if monetary policy is accommodative. Permanently higher spending or deficits imply significantly lower initial multipliers.
KW - Econometrics and Finance (all)2001 Economics
KW - Econometrics and Finance (miscellaneous)
KW - Economics
KW - Econometrics and Finance (all)2001 Economics
KW - Econometrics and Finance (miscellaneous)
KW - Economics
UR - http://hdl.handle.net/10447/111291
UR - http://pubs.aeaweb.org/doi/pdfplus/10.1257/mac.4.1.22
M3 - Article
VL - 4
SP - 22
EP - 68
JO - American Economic Journal: Macroeconomics
JF - American Economic Journal: Macroeconomics
SN - 1945-7707
ER -