Effects of fiscal stimulus in structural models

American Economic Journal: Macroeconomics

Volumn 4, Issue 1, 2012, Pages 22-68

  Coenen, Günter ^a   Erceg, Christopher J ^b   Freedman, Charles ^c   Furceri, Davide ^d   Kumhof, Michael ^e   Lalonde, René ^f   Laxton, Douglas ^e   Lindé, Jesper ^b   Mourougane, Annabelle ^g   Muir, Dirk ^e   Mursula, Susanna ^e   de Resende, Carlos ^f   Roberts, John ^b   Roeger, Werner ^h   Snudden, Stephen ⁱ   Trabandt, Mathias ^a   in't Veld, Jan ^h  

^a EUROPEAN CENTRAL BANK   (Germany)

^b FEDERAL RESERVE BOARD   (United States)

^c CARLETON UNIVERSITY   (Canada)

^d UNIVERSITY OF PALERMO   (Italy)

^e INTERNATIONAL MONETARY FUND   (United States)

^f BANK OF CANADA   (Canada)

^g OECD   (France)

^h EUROPEAN COMMISSION   (Belgium)

ⁱ INTER AMERICAN DEVELOPMENT BANK   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84857157167     PISSN: 19457707     EISSN: 19457715     Source Type: Journal    
DOI: 10.1257/mac.4.1.22     Document Type: Article

References (64)

1. Altig, David, Lawrence J. Christiano, Martin Eichenbaum, and Jesper Lindé. 2010. "Firm-Specific Capital, Nominal Rigidities and the Business Cycle."Review of Economic Dynamics, 14(2): 225-47.
2. Álvarez, Luis J., Emmanuel Dhyne, Marco M. Hoeberichts, Claudia Kwapil, Hervé Le Bihan, Patrick Lünnemann, Fernando Martins, et al. 2006. "Sticky Prices in the Euro Area: A Summary of New Micro-Evidence."Journal of the European Economic Association, 4(2-3): 575-84.
3. Auerbach, Alan J., and Yuriy Gorodnichenko. 2011. "Measuring the Output Responses to Fiscal Policy."http://www.econ.berkeley.edu/~auerbach/measuringtheoutput.pdf.
4. Barro, Robert J., and Charles J. Redlick. 2009. "Macroeconomic Effects from Government Purchases and Taxes."National Bureau of Economic Research Working Paper 15369.
5. Bi, Huixin, and Michael Kumhof. 2011. "Jointly Optimal Monetary and Fiscal Policy Rules under Liquidity Constraints." Journal of Macroeconomics, 33(3): 373-89.
6. Blanchard, Olivier, and Roberto Perotti. 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output." Quarterly Journal of Economics, 117(4): 1329-68.
7. Brayton, F., and P. Tinsley. 1996. "A Guide to FRB/US: A Macroeconomic Model of the United States." Board of Governors of the Federal Reserve System, Finance and Economics Discussion Series 96-42. http://www.federalreserve.gov/pubs/feds/1996/199642/199642abs.html.
8. Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans. 2005. "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy." Journal of Political Economy, 113(1): 1-45.
9. Christiano, Lawrence, Martin Eichenbaum, and Sergio Rebelo. 2011. "When Is the Government Spending Multiplier Large?" Journal of Political Economy, 119(1): 78-121.
10. Christiano, Lawrence, Roberto Motto, and Massimo Rostagno. 2010. "Financial Factors in Economic Fluctuations." European Central Bank Working Paper 1192.
11. Christiansen, Lone. 2008. "Appendix II: Fiscal Multipliers-A Review of the Literature." In "Fiscal Policy for the Crisis," International Monetary Fund (IMF) Staff Position Note 08/01, Antonio Splimbergo, Steve Symansky, Olivier Blanchard, and Carlo Cottarelli, 17-21.
12. Coenen, Günter, Christopher J. Erceg, Charles Freedman, Davide Furceri, Michael Kumhof, René Lalonde, Douglas Laxton, Jesper Lindé, Annabelle Mourougane, Dirk Muir, Susanna Mursula, Carlos de Resende, John Roberts, Werner Roeger, Stephen Snudden, Mathias Trabandt, and Jan in't Veld. 2012. "Effects of Fiscal Stimulus in Structural Models; Dataset." American Economic Journal: Macroeconomics. http://dx.doi.org/10.1257/mac.4.1.22.
13. Coenen, Günter, Peter McAdam, and Roland Straub. 2008. "Tax Reform and Labour-Market Performance in the Euro Area: A Simulation-Based Analysis Using the New Area-Wide Model." Journal of Economic Dynamics and Control, 32(8): 2543-83.
14. Cogan, John F., Tobias Cwik, John B. Taylor, and Volker Wieland. 2010. "New Keynesian versus Old Keynesian Government Spending Multipliers." Journal of Economic Dynamics and Control, 34(3): 281-95.
15. Cogan, John F., and John B. Taylor. 2010. "What the Government Purchases Multiplier Actually Multiplied in the 2009 Stimulus Package." National Bureau of Economic Research Working Paper 16505.
16. Corsetti, Giancarlo, André Meier, and Gernot Müller. 2009. "Fiscal Stimulus with Spending Reversals." International Monetary Fund Working Paper 09/106.
17. Decressin, Jörg, and Douglas Laxton. 2009. "Gauging Risks for Deflation." International Monetary Fund Staff Position Note 09/01.
18. Drautzburg, Thorsten, and Harald Uhlig. 2011. "Fiscal Stimulus and Distortionary Taxation." National Bureau of Economic Research Working Paper 17111.
19. Eggertsson, Gauti B. Forthcoming. "Was the New Deal Contractionary?" American Economic Review.
20. Eggertsson, Gauti B. 2011. "What Fiscal Policy is Effective at Zero Interest Rates?" NBER Macroeconomics Annual 2010, Vol. 25, ed. Daron Acemoglu and Michael Woodford, 59-112. Chicago: University of Chicago Press.
21. Engen, Eric M., and R. Glenn Hubbard. 2005. "Federal Government Debt and Interest Rates." In NBER Macroeconomics Annual 2004, Vol. 19, ed. Mark Gertler and Kenneth Rogoff, 83-138. Cambridge, MA: MIT Press.
22. Erceg, Christopher J., Luca Guerrieri, and Christopher Gust. 2006. "SIGMA: A New Open Economy Model for Policy Analysis." Journal of International Central Banking, (2)1: 1-50.
23. Erceg Christopher J., and Jesper Lindé. 2010a. "Is There a Fiscal Free Lunch in a Liquidity Trap?" Board of Governors of the Federal Reserve System, International Finance Discussion Paper 1003.
24. Erceg, Christopher J., and Jesper Lindé. 2010b. "Asymmetric Shocks in a Currency Union With Monetary and Fiscal Handcuffs." NBER National Seminar on Macroeconomics 2010. Vol. 7, ed. Richard Clarida, and Francesco Giavazzi, 95-135, Chicago: University of Chicago Press.
25. Favero, Carlo A., and Francesco Giavazzi. 2009. "How Large Are the Effects of Tax Changes?" CEPR Discussion Paper 7439.
26. Freedman, Charles, Michael Kumhof, Douglas Laxton, Dirk Muir, and Susanna Mursula. 2010. "Global Effects of Fiscal Stimulus during the Crisis." Journal of Monetary Economics, 57(5): 506-26.
27. Furceri, Davide, and Annabelle Mourougane. 2010. "The Effects of Fiscal Policy on Output: A DSGE Analysis." OECD Economics Department Working Paper 770.
28. Gale, William G., and Peter R. Orszag. 2004. "Budget Deficits, National Saving, and Interest Rates." Brookings Papers on Economic Activity (2): 101-87.
29. Galí, Jordi, J. David López-Salido, and Javier Vallés. 2007. "Understanding the Effects of Government Spending on Consumption." Journal of the European Economic Association, 5(1): 227-70.
30. Giavazzi, Francesco, and Marco Pagano. 1990. "Can Severe Fiscal Contractions be Expansionary: Tales of Two Small European Countries." In NBER Macroeconomics Annual 1990, Vol. 5, ed. Olivier Jean Blanchard and Stanley Fischer, 75-111. Cambridge, MA: MIT Press.
31. Girouard, Nathalie, and Christophe André. 2005. "Measuring Cyclically-Adjusted Budget Balances for OECD Countries." OECD Economics Department Working Paper 434.
32. Greenwood, J., Z. Hercowitz, and G. Huffman. 1988. "Investment Capacity Utilization and the Real Business Cycles." American Economic Review, 78: 402-17.
33. Gust, Christopher, Sylvain Leduc, and Nathan Sheets. 2009. "The Adjustment of Global External Balances: Does Partial Exchange-Rate Pass-Through to Trade Prices Matter?" Journal of International Economics, 79(2): 173-85.
34. Hall, Robert E. 2009. "By How Much Does GDP Rise if the Government Buys More Output?" National Bureau of Economic Research Working Paper 15496.
35. Hemming, Richard, Michael S. Kell, and Selma Mahfouz. 2002. "The Effectiveness of Fiscal Policy in Stimulating Economic Activity-A Review of the Literature." International Monetary Fund (IMF) Working Paper 02/208.
36. Iacoviello, Matteo, and Stefano Neri. 2010. "Housing Market Spillovers: Evidence from an Estimated DSGE Model." American Economic Journal: Macroeconomics, 2(2): 125-64.
37. International Monetary Fund. 2009a. "Global Economic Slump Challenges Policies." World Economic Outlook Update, January 28. http://www.imf.org/external/pubs/ft/weo/2009/update/01/.
38. International Monetary Fund. 2009b. "The State of Public Finances: Outlook and Medium-Term Policies After the 2008 Crisis." Fiscal Affairs Department. www.imf.org/external/np/pp/eng/2009/030609.pdf.
39. International Monetary Fund. 2010. "Will It Hurt? Macroeconomic Effects of Fiscal Consolidation." World Economic Outlook: Recovery, Risk, and Rebalancing, October. www.imf.org/external/pubs/ft/weo/2010/02/pdf/c3.pdf.
40. Johnson, David S., Jonathan A. Parker, and Nicholas S. Souleles. 2006. "Household Expenditure and the Income Tax Rebates of 2001." American Economic Review, 96(5): 1589-1610.
41. King, Robert G., Charles Plosser, and Sergio T. Rebelo. 1988a. "Production, Growth, and Business Cycles: I. The Basic Classical Model." Journal of Monetary Economics, 21 (2-3): 195-232.
42. King, Robert G., Charles Plosser, and Sergio T. Rebelo. 1988b. "Production, Growth, and Business Cycles: II. New Directions Model." Journal of Monetary Economics, 21 (2-3): 309-41.
43. Kumhof, Michael, and Douglas Laxton. 2009. "Fiscal Deficits and Current Account Deficits." International Monetary Fund (IMF) Working Paper 09/237. http://www.imf.org/external/pubs/cat/longres. aspx?sk=23367.0.
44. Kumhof, Michael, Douglas Laxton, Dirk Muir, and Susanna Mursula. 2010. "The Global Integrated Monetary and Fiscal Model (GIMF)-Theoretical Structure." International Monetary Fund (IMF) Working Paper 10/34. http://www.imf.org/external/pubs/cat/longres.aspx?sk=23615.0.
45. Lalonde, René, and Dirk Muir. 2007. "The Bank of Canada's Version of the Global Economy Model (BoC-GEM)." Bank of Canada Technical Report 98. http://www.bankofcanada.ca/en/res/tr/2007/ tr98-e.html.
46. Laubach, Thomas. 2009. "New Evidence on the Interest Rate Effects of Budget Deficits and Debt." Journal of the European Economic Association, 7(4): 858-85.
47. Leeper, Eric M., Todd B. Walker, and Shu-Chun Susan Yang. 2009. "Fiscal Foresight and Information Flows." National Bureau of Economic Research Working Paper 14630.
48. Lipsky, John. 2008. "The Current Macroeconomic Outlook 2009: Issues of Systemic Stability." Speech, DevisenForum 2008, via videoconference from Washington, DC to Frankfurt, December 10, 2008. http://www.imf.org/external/np/speeches/2008/121008a.htm.
49. Mertens, Karel, and Morten O. Ravn. 2009. "Empirical Evidence on the Aggregate Effects of Anticipated and Unanticipated US Tax Policy Shocks." National Bank of Belgium Working Paper 181.
50. Mountford, Andrew, and Harald Uhlig. 2009. "What Are the Effects of Fiscal Policy Shocks?" Journal of Applied Economics, 24(6): 960-92.
51. Parker, Jonathan A., Nicholas S. Souleles, David S. Johnson, and Robert McClelland. 2011. "Consumer Spending and the Economic Stimulus Payments of 2008." National Bureau of Economic Research Working Paper 16684.
52. Perotti, Roberto. 2007. "In Search of the Transmission Mechanism of Fiscal Policy." National Bureau of Economic Research Working Paper 13143.
53. Ramey, Valerie. 2009. "Identifying Government Spending Shocks: It's All in the Timing." National Bureau of Economic Research Working Paper 15464.
54. Ratto, Marco, Werner Roeger, and Jan in't Veld. 2009. "QUEST III: An Estimated Open-Economy DSGE Model of the Euro Area with Fiscal and Monetary Policy." Economic Modelling, 26(1): 222-33.
55. Roeger, Werner, and Jan in't Veld. 2009. "Fiscal Policy with Credit Constrained Households." European Economy Economic Papers 357. http://ec.europa.eu/economy_finance/publications/publication_ summary13837_en.htm.
56. Roeger, Werner, and Jan in't Veld. 2010. "Fiscal Stimulus and Exit Strategies in the EU: A Modelbased Analysis." European Economy Economic Papers 426. http://ec.europa.eu/economy_finance/publications/economic_paper/2010/ecp426_en.htm.
57. Romer, Christina D., and David H. Romer. 2010. "The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks." American Economic Review, 100(3): 763-801.
58. Smets, Frank, and Raf Wouters 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area." Journal of the European Economic Association, 1(5): 1123-75.
59. Smets, Frank, and Rafael Wouters. 2007. "Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach." American Economic Review, 97(3): 586-606.
60. Spilimbergo, Antonio, Steven Symansky, Olivier Blanchard, and Carlo Cottarelli. 2008. "Fiscal Policy For the Crisis." International Monetary Fund (IMF) Staff Position Note 08/01.
61. Taylor, John. 1993. "Discretion versus Policy Rules in Practice." Carnegie-Rochester Conference Series on Public Policy, 39, December, 195-214.
62. Taylor, John B. 1999. "A Historical Analysis of Monetary Policy Rules" NBER Chapters, in: Monetary Policy Rules, pages 319-48 National Bureau of Economic Research, Inc.
63. Uhlig, Harald. 2010. "Some Fiscal Calculus." American Economic Review, 100(2): 30-34.
64. Woodford, Michael. 2011. "Simple Analytics of the Government Expenditure Multiplier." American Economic Journal: Macroeconomics, 3(1): 1-35.