Fiscal Multipliers and the Zero Lower Bound

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F17%3A00097104" target="_blank" >RIV/00216224:14560/17:00097104 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.sav.sk/journals/uploads/0615120204%2017%20Hlou%C5%A1ek%20+%20RS.pdf" target="_blank" >https://www.sav.sk/journals/uploads/0615120204%2017%20Hlou%C5%A1ek%20+%20RS.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Fiscal Multipliers and the Zero Lower Bound

Popis výsledku v původním jazyce

This paper studies the implications of the zero lower bound (ZLB) on interest rates for the size of fiscal multipliers. The analysis is carried out in an extended version of the ECB’s New Area-Wide Model, which contains various fiscal instruments. The results show that the size of fiscal multipliers depends heavily on the length of the period during which the interest rate is binding. Government consumption is the most efficient instrument of fiscal policy; the value of its multiplier is well above one and can even be double for a long time at the ZLB. The multiplier for consumption taxes is also influenced substantially by the interest rate constraint, but its value remains below one. The multipliers for social security contributions and labour income taxes are not influenced much. The behaviour of the government investment multiplier is quite tricky: an amplifying effect on output is present only when the economy stays at the zero lower bound for just a few years; when there is a longer time at the ZLB, this multiplier can even be negative.

Název v anglickém jazyce

Fiscal Multipliers and the Zero Lower Bound

Popis výsledku anglicky

This paper studies the implications of the zero lower bound (ZLB) on interest rates for the size of fiscal multipliers. The analysis is carried out in an extended version of the ECB’s New Area-Wide Model, which contains various fiscal instruments. The results show that the size of fiscal multipliers depends heavily on the length of the period during which the interest rate is binding. Government consumption is the most efficient instrument of fiscal policy; the value of its multiplier is well above one and can even be double for a long time at the ZLB. The multiplier for consumption taxes is also influenced substantially by the interest rate constraint, but its value remains below one. The multipliers for social security contributions and labour income taxes are not influenced much. The behaviour of the government investment multiplier is quite tricky: an amplifying effect on output is present only when the economy stays at the zero lower bound for just a few years; when there is a longer time at the ZLB, this multiplier can even be negative.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50200 - Economics and Business

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Journal of Economics

ISSN

0013-3035

e-ISSN

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Svazek periodika

65

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

15

Strana od-do

305-319

Kód UT WoS článku

000403994500001

EID výsledku v databázi Scopus

2-s2.0-85029583331