State dependence of fiscal multipliers: the source of fluctuations matters
We develop a general theory of state-dependent fiscal multipliers in a framework featuring two empirically relevant frictions: idle capacity and unsatisfied demand. Our key novel finding is that the <em>source of fluctuations</em> determines the cyclicality of multipliers. Policies that...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
| Published: |
Elsevier
2022
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