State dependence of fiscal multipliers: the source of fluctuations matters
We develop a general theory of state-dependent fiscal multipliers in a framework featuring interaction between two empirically relevant goods market frictions: idle productive capacity and unsatisfied demand. Our key novel finding is that the source of economic fluctuations determines the cyclicalit...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
University of Oxford
2020
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