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Government Spending Multipliers in Good Times and in Bad

Evidence from US Historical Data

Dados Bibliográficos

ID10172839
AutoresValerie A Ramey, Valerie Ramey (University of California San Diego), Sarah Zubairy (0000-0002-5452-0250, Mitchell Institute)
Ano2017
Volume126
Fascículo2
Páginas850-901
Data de publicação2017-12-05
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoJournal of Political Economy (JOURNAL)
Identificadores do periódicoISSN: 0022-3808 • E-ISSN: 1537-534X
EditoraUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/696277
OpenAlexW1905678139
IdiomaEN
Citações recebidas131
Referências citadas42

We investigate whether US government spending multipliers are higher during periods of economic slack or when interest rates are near the zero lower bound. Using new quarterly historical US data covering multiple large wars and deep recessions, we estimate multipliers that are below unity irrespective of the amount of slack in the economy. These results are robust to two leading identification schemes, two different estimation methodologies, and many alternative specifications. In contrast, the results are more mixed for the zero lower bound state, with a few specifications implying multipliers as high as 1.5

Algorithm · Contrast (vision · Econometrics · Economics · Government (linguistics · Government spending · Great recession · Identification (biology · Interest rate · Keynesian economics · Macroeconomics · Mathematical economics · Recession · State (computer science · Upper and lower bounds · Welfare · Zero (linguistics · Zero lower bound · Computer Science · Economic Policies and Impacts · Fiscal Policies and Political Economy · Mathematics · Monetary Policy and Economic Impact

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Obras citantes distintas131
Citações por ano16,38
Intervalo de citações2018 - 2026 (9)
Velocidade de citaçãocurrent
Altamente citadoSim
Tipos de citaçãoNeutras: 131
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