| Finance and Economics Discussion Series: The Analytics of Svars: A Unified Framework to Measure Fiscal Multipliers Contributor(s): Caldara, Dario (Author), Kamps, Christophe (Author), United States Federal Reserve Board (Created by) |
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ISBN: 128869802X ISBN-13: 9781288698028 Publisher: Bibliogov OUR PRICE: $16.86 Product Type: Paperback - Other Formats Published: February 2013 |
| Additional Information |
| BISAC Categories: - Political Science |
| Physical Information: 0.15" H x 7.44" W x 9.69" (0.32 lbs) 72 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: Does fiscal policy stimulate output? SVARs have been used to address this question but no stylized facts have emerged. We derive analytical relationships between the output elasticities of fiscal variables and fiscal multipliers. We show that standard identification schemes imply different priors on elasticities, generating a large dispersion in multiplier estimates. We then use extra-model information to narrow the set of empirically plausible elasticities, allowing for sharper inference on multipliers. Our results for the U.S. for the period 1947-2006 suggest that the probability of the tax multiplier being larger than the spending multiplier is below 0.5 at all horizons. |
