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• W3125742897 abstract "This paper applies the DSGE-VAR methodology to assess the size of fiscal multipliers in the data and the relative contributions of two transmission mechanisms of government spending shocks, namely hand-to-mouth consumers and Edgeworth complementarity. Econometric experiments show that a DSGE model with Edgeworth complementarity is a better representation of the transmission mechanism of fiscal policy as it yields dynamic responses close to those obtained with the flexible DSGE-VAR model (i.e. an impact output multiplier larger than one and a crowding-in of private consumption). The estimated share of hand-to-mouth consumers is too small to replicate the positive response of private consumption." @default.
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• W3125742897 date "2016-01-01" @default.
• W3125742897 modified "2023-10-04" @default.
• W3125742897 title "In Search of the Transmission Mechanism of Fiscal Policy in the Euro Area" @default.
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• W3125742897 doi "https://doi.org/10.2139/ssrn.2748570" @default.
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