The composition of government spending and the multiplier at the Zero Lower Bound

We investigate the size of the multiplier at the ZLB in a New keynesian model. It ranges from around -0.25 to +1.5, depending on the extent to which government spending is productive, substitutable or not for private consumption.

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Bibliographic details
Volume: 2014-017
Main Author: Albertini, Julien
Poirier, Arthur
Roulleau-Pasdeloup, Jordan
Format: Paper
Language: English
Place of publication: Berlin SFB 649, Economic Risk 2014
published in: SFB 649 Discussion Paper Vol. 2014-017
Data of publication: 2014
Subjects:
Online Access: Fulltext
Database: EconStor
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