U.S. Fiscal Multipliers
This paper investigates whether government spending multipliers are time-varying.
The multipliers are measured using time-varying parameter (TVP) local projections.
This paper uses a simple modication to local projections that corrects for the inherent
autocorrelated errors in local projections. The results indicate that there is
evidence of time variation in government spending multipliers and that the results of
previous studies should be seriously questioned. The results also indicate that there
is significant time variation in the strength of Blanchard-Perotti and defense news
Time Varying Parameters
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Rights for Collection: Masters Theses