Fiscal policy, pricing frictions and monetary accommodation

Economic Policy

Volumn 26, Issue 68, 2011, Pages 555-598

  Canova, Fabio ^a   Pappa, Evi ^a  

^a UNIVERSITAT POMPEU FABRA   (Spain)

Author keywords

[No Author keywords available]

Indexed keywords

CRISIS MANAGEMENT; DEBT; EMPIRICAL ANALYSIS; EXPENDITURE; FINANCIAL CRISIS; FISCAL POLICY; INFLATION; MONETARY POLICY;

EID: 80053540549     PISSN: 02664658     EISSN: 14680327     Source Type: Journal    
DOI: 10.1111/j.1468-0327.2011.00272.x     Document Type: Article

References (50)

1. Afonso, A. (2010). 'Expansionary fiscal consolidations in Europe: New evidence', Applied Economic Letters, 17, 105-109.
2. Alesina, A. and S. Ardagna (2009). 'Large changes in fiscal policy: taxes vs. spending', NBER Working Paper 15438, forthcoming in Tax Policy and the Economy.
3. Auerbach, A. and Y. Gorodnichenko (2010). 'Measuring the output response of fiscal shocks', NBER Working Paper 16311, Cambridge, MA.
4. Barro, R. and C. Redlick (2009). 'The macroeconomic effects of Government Purchases and Taxes', NBER Working Paper 15369, NBER, Cambridge, MA, forthcoming in Quarterly Journal of Economics.
5. Baxter, M. and R. King (1993). 'Fiscal policy in general equilibrium', American Economic Review, 83, 315-34.
6. Blanchard, O. and R. Perotti (2002). 'An empirical characterization of the dynamic effect of changes in government spending and taxes on output', Quarterly Journal of Economics, 117, 1329-68.
7. Bouakez, H. and N. Rebei (2007). 'Why does government consumption raise after a spending shock', Canadian Journal of Economics, 40, 954-79.
8. Burnside, C., M. Eichenbaum and J. Fisher (2004). 'Fiscal shocks and their consequences', Journal of Economic Theory, 115, 89-117.
9. Caldara, D. and C. Kamps (2008). 'What are the effects of fiscal shocks? A VAR-based comparative analysis', European Central Bank Working Paper 877, ECB, Frankfurt, Germany.
10. Canova, F. (2007). Methods for Applied Macroeconomic Research, Princeton University Press, Princeton, NJ.
11. Canova, F. and E. Pappa (2006). 'Does it costs to be virtuous? The macroeconomic effects of fiscal expansions', in R. Clarida, J. Frankel, F. Giavazzi and K. West (eds.), NBER International Seminar in Macroeconomics, MIT Press, Cambridge, MA, pp. 11-65.
12. Canova, F. and E. Pappa (2011), 'Unpredictable and predictable government expenditure shocks', UPF and UAB manuscript.
13. Christiano, L., M. Eichenbaum and S. Rebelo (2009). 'When is the government spending multiplier large?', NBER Working Paper 15394, NBER, Cambridge, MA.
14. Coenen, G., C. Erceg, C. Freedman, D. Furceri, M. Kumhof, R. Lalonde, D. Laxton, J. Lindé, A. Mourougane, D. Muir, S. Mursula, C. de Resende, J. Roberts, W. Roeger, S. Snudden, M. Trabandt and J. Veld (2010). 'Effects of fiscal stimulus in structural models', IMF Working Paper 10-73, IMF, Washington, DC.
15. Coenen, G., M. Morh and R. Straub (2008). 'Fiscal consolidation in the Euro area: long run benefits and short run costs', Economic Modeling, 25, 912-32.
16. Cogan, J., T. Cwik, J. Taylor and V. Wrieland (2010). 'New Keynesian version old Keynesian government spending multipliers', Journal of Economic Dynamics and Control, 34, 281-95.
17. Corsetti, G., A. Meier and G. Muller (2009). 'Fiscal Stimulus with spending reversals', IMF Working Paper 09/106, IMF, Washington, DC.
18. Corsetti, G. and G. Muller (2006). 'Budget deficits and the current account: Openness and the fiscal persistence', Economic Policy, October, 597-638.
19. Cwik, T. and W. Wieland (2009). 'Keynesian government spending multipliers and spillovers in the Euro Area', Center for Financial Studies Working Paper 2009-25, CFS, Frankfurt, Germany.
20. Deveraux, M., A. Head and B. Lapham (1996). 'Monopolistic competition, increasing returns and the effects of government spending', Journal of Money Credit and Banking, 28, 233-55.
21. Erceg, C. and J. Lindé (2010). 'Is there a fiscal free lunch in a liquidity trap', Board of Governors of the Federal Reserve System, manuscript.
22. Faccini, R., H. Mumtaz and P. Surico (2011). 'Testing for fiscal spillovers in normal times and during a global crisis', mimeo, Bank of England and London Business School.
23. Favero, C. and F. Giavazzi (2007). 'Debt and the effects of fiscal policy', Bocconi University, manuscript.
24. Forni, L., A. Gerali and M. Pisani (2010). 'The macroeconomic effects of fiscal consolidations in Euro Area countries', Journal of Economic Dynamics and Control, 34, 1791-812.
25. Forni, L., L. Monteforte and L. Sessa (2009). 'The general equilibrium effects of fiscal policy: estimates for the Euro Area', Journal of Public Economics, 93, 559-85.
26. Galì, J. (1994). 'Government size and macroeconomic stability', European Economic Review, 38, 117-32.
27. Galì, J., D. Lopez-Salido and J. Valles (2007). 'Understanding the effects of government spending on consumption', Journal of the European Economic Association, 5, 227-70.
28. Giavazzi, F. and M. Pagano (1990). 'Can severe contractions be expansionary? Two tales of small European countries', in O. Blanchard and S. Fisher (eds.), NBER Macroeconomic Annual, MIT Press, Cambridge, MA, pp. 75-122.
29. Giuliadori, M. and R. Beetsma (2008). 'On the relationship between fiscal plans in the European Union: an empirical analysis based on read-time data', Journal of Comparative Economics, 36, 221-42.
30. Hall, R. (2009). 'By how much does GDP rise if the Government buys more output? Brookings Papers on Economic Activity, 2, 183-231.
31. Hall, R. (2011). 'The long slump', NBER Working Paper 16741.
32. Kirchner, M., J. Cimadomo and S. Hauptmeier (2010). 'The transmission of government spending shocks in the Euro area', Tinbergen Institute Discussion Paper 2010-021, Amsterdam.
33. Leeper, E. (1991). 'Equilibria under active and passive monetary and fiscal policies', Journal of Monetary Economics, 27, 129-47.
34. Leeper, E., T. Walker and S. Yang (2009). 'Fiscal foresight and information flows', NBER Working Paper 14630, NBER, Cambridge, MA.
35. Mertens, K. and M. Ravn (2008). 'Understanding the aggregate effects of anticipated and unanticipated tax policy shock', forthcoming, Review of Economic Dynamics.
36. Monacelli, T. and R. Perotti (2008). 'Fiscal policy, wealth effects and markups', NBER Working Paper 14584, NBER, Cambridge, MA.
37. Mountford, A. and H. Uhlig (2009) 'What are the effects of fiscal policy shocks?', Journal of Applied Econometrics, 24, 960-92.
38. Nakamura, E. and J. Steinsson (2011). 'Fiscal stimulus in a monetary union: evidence from U.S. regions', mimeo, Columbia University.
39. Nekarda, C. and V. Ramey (2011). 'Industry evidence on the effects of government spending', American Economic Journal: Macroeconomics, 3, 36-59.
40. Pappa, E. (2009). 'The effects of fiscal shocks on employment and the real wage', International Economic Review, 50, 217-44.
41. Paredes, J., D. Pedregal and J. Perez (2009). 'A quarterly fiscal database for the Euro Area based on intra-annual fiscal information', ECB Working Paper 1132, ECB, Frankfurt, Germany.
42. Perotti, R. (2007). 'In search of the transmission mechanism of fiscal policy', in D. Acemoroglu, K. Rogoff and M. Woodford (eds.), NBER Macro Annual, 22, 169-226, MIT Press, Cambridge, MA.
43. Ramey, V. (2009). 'Identifying government spending shocks: It is all in the timing', forthcoming, Quarterly Journal of Economics.
44. Ramey, V. and M. Shapiro (1998). 'Costly capital reallocation and the effects of government spending', Carnegie Rochester Conference Series on Public Policy, 48, 145-94.
45. Romer, C. and J. Bernstein (2009). 'The job impact of the American Recovery and Reinvestment Act, ' memorandum, The White House.
46. Rossi, B. and S. Zubairy (2009). 'What is the importance of fiscal and monetary shocks in explaining US macroeconomic fluctuations?' forthcoming, Journal of Money Banking and Credit.
47. Rotemberg, J. and M. Woodford (1992). 'Oligopolistic pricing and the effects of aggregate demand on economic activity', Journal of Political Economy, 100, 1253-97.
48. Spilimbergo, A., S. Symansky, O. Blanchard and C. Cottarelli (2009). 'Fiscal policy for the crisis', CEPR Working Paper 7130.
49. Uhlig, H. (2010). 'Some fiscal calculus', American Economic Review, 100, 30-34.
50. Woodford, M. (2011). 'Simple analytics of the government expenditure multiplier', American Economic Journal: Macroeconomics, 3, 1-35.