• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Introduction
      • Theory
        • The neoclassical synthesis
        • New Classical approaches
        • New Keynesian models
      • Empirics
        • Structural econometric approaches
        • Vector autoregressions (VARs)
        • Simulations using dynamic stochastic general equilibrium models
        • Miscellaneous approaches
        • A survey of basic results
      • Distinctions
        • Large, closed vs. small, open economies
        • Fixed vs. flexible exchange rate regimes
        • Monetary regimes (inflation targeting, zero interest rate bound)
      • Asymmetric fiscal effects
        • State-dependent multipliers
        • Low versus high debt levels
        • Ordinary versus stressed financial systems
      • Conclusion
      • Acknowledgments
    • See Also
    • Bibliography
    • How to cite this article

fiscal multipliers

Menzie Chinn
From The New Palgrave Dictionary of Economics, Online Edition, 2013
Edited by Steven N. Durlauf and Lawrence E. Blume
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The concept of fiscal multipliers is examined in the context of the major theoretical approaches. Differing methods of calculating multipliers are then recounted (structural equations, VAR, simulation). The sensitivity of estimates to conditioning on the state of the economy (slack, financial system) and policy regimes (exchange rate system, monetary policy reaction function) is discussed.
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How to cite this article

Chinn, Menzie. "fiscal multipliers." The New Palgrave Dictionary of Economics. Online Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2013. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 24 November 2017 <http://www.dictionaryofeconomics.com/article?id=pde2013_F000329> doi:10.1057/9780230226203.3896

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