Ten Years after the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research? / Valerie A. Ramey.

Format:

Book

Author/Creator:

Ramey, Valerie A.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25531.

NBER working paper series no. w25531

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Ten Years after the Financial Crisis

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

This paper takes stock of what we have learned from the "Renaissance" in fiscal research in the ten years since the financial crisis. I first summarize the new innovations in methodology and discuss the various strengths and weaknesses of the main approaches. Reviewing the estimates, I come to the surprising conclusion that the bulk of the estimates for average spending and tax change multipliers lie in a fairly narrow range, 0.6 to 1 for spending multipliers and -2 to -3 for tax change multipliers. However, I identify economic circumstances in which multipliers lie outside those ranges. I conclude by reviewing the debate on whether multipliers were higher on the stimulus spending in the U.S. and the fiscal consolidations in Europe.

Notes:

Print version record

February 2019.