On Measuring the Effects of Fiscal Policy in Recessions
Citations
1,932 citations
879 citations
775 citations
Cites background from "On Measuring the Effects of Fiscal ..."
...For additional discussion see Parker (2011) and Ramey (2011b)....
[...]
756 citations
719 citations
References
11,195 citations
"On Measuring the Effects of Fiscal ..." refers methods in this paper
...12For example, this is the view with respect to monetary policy of Sims (1980) and Leeper, Sims, and Zha (1996), less explicitly in Romer and Romer (2010), and in much of the debate over the size of the multiplier in early 2009....
[...]
4,286 citations
3,795 citations
"On Measuring the Effects of Fiscal ..." refers background in this paper
...In the canonical macroeconomic model with financial frictions, Bernanke and Gertler (1989), the constraints always bind so that the model is close to linear — the constraint moves amplifying fluctuations but dynamics are linear. Older work contains nonlinearities: Mankiw (1986) for example contains an important nonlinearity but is not readily estimable. And much current work is incorporating occassionally-binding constraints into macroeconomic models and studying non-linear effects. See Brunnermeier and Sannikov (2011) for an example with financial constraints. 22Not that all issues have been resolved, just that many issues have been nicely resolved. 23I use the term independence in the sense used by Prescott (1986)....
[...]
...In the canonical macroeconomic model with financial frictions, Bernanke and Gertler (1989), the constraints always bind so that the model is close to linear — the constraint moves amplifying fluctuations but dynamics are linear. Older work contains nonlinearities: Mankiw (1986) for example contains an important nonlinearity but is not readily estimable. And much current work is incorporating occassionally-binding constraints into macroeconomic models and studying non-linear effects. See Brunnermeier and Sannikov (2011) for an example with financial constraints....
[...]
...In the canonical macroeconomic model with financial frictions, Bernanke and Gertler (1989), the constraints always bind so that the model is close to linear — the constraint moves amplifying fluctuations but dynamics are linear. Older work contains nonlinearities: Mankiw (1986) for example contains an important nonlinearity but is not readily estimable....
[...]
...In the canonical macroeconomic model with financial frictions, Bernanke and Gertler (1989), the constraints always bind so that the model is close to linear — the constraint moves amplifying fluctuations but dynamics are linear....
[...]
2,803 citations
"On Measuring the Effects of Fiscal ..." refers background in this paper
...Auerbach and Gorodnichenko (2010) finds that multipliers are similar on impact in reces14This methodology and issues originate as discussions in the literature on monetary policy, see Rotemberg and Woodford (1997) and Christiano, Eichenbaum, and Evans (1998)....
[...]
2,738 citations
"On Measuring the Effects of Fiscal ..." refers background in this paper
...Huntley and Michelangeli (2010) studies a heterogeneous-agent economy with incomplete markets and borrowing constraints (as in Aiyagari (1994))....
[...]