Withering Government Spending Multipliers

Material TypeArticleLanguageEnglish
TitleWithering Government Spending Multipliers Author(S)MATTHEW CANZONERI (Author)
Abstract  The empirical literature has documented a weakening of the consumption and output responses to an increase in government spending during the last 30 years. We show that a New Keynesian model in which real government spending is observed with measurement errors can account for the reduction in the size of government spending multipliers ...Paginationp185–210
Journal TitleJournal of Money, Credit, and Banking  
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