عنوان

The Size of the Multiplier:

TLpq2305945318

انگلیسی

The Size of the Multiplier:

[Thesis]

Focht, Daniel

Comparing Alternate Views after the Great Recession

Yasar, Yavuz

University of Denver

2019

106

M.A.

University of Denver

2019

This thesis reviews the major theoretical frameworks and their outlook on the government spending, its effectiveness, the implied size of the multiplier and how they differed in empirical studies. This is followed by an estimation of the government multiplier for the major U.S. fiscal policy, namely the American Recovery and Reinvestment Act (ARRA), after the Great Recession of 2007-2009. Own estimation of the size of the multiplier is presented using a standard SVAR model based on New Keynesian approach for time period between 2009 and 2018. In addition, following the classical economic theory, the multiplier is recalculated in the absence of Finance, Insurance, and Real Estate (FIRE) sector which is considered to be unproductive sector since it does not add value according to the classical theory. I find the multiplier to be below unity during this period with the exception when the FIRE industries are excluded.

Economics

Focht, Daniel

Yasar, Yavuz

p

[Thesis]

276903

a

Y