Fiscal multiplier/Tutorials: Difference between revisions
Jump to navigation
Jump to search
imported>Nick Gardner (Created page with "{{subpages}}") |
imported>Nick Gardner No edit summary |
||
| Line 1: | Line 1: | ||
{{subpages}} | {{subpages}} | ||
Christine Romer has argued that that it is "incredibly hard" to estimate the value of a multiplier because fiscal actions are often taken in response to other things happening in the economy, and separating the impact of those other factors from the impact of fiscal change very difficult. Failure to do so can result in [[omitted-variable bias]] resulting in an underestimate of the multiplier - an error that Ms Romer believes to be common. | |||
<ref>[http://elsa.berkeley.edu/~cromer/Written%20Version%20of%20Effects%20of%20Fiscal%20Policy.pdf Christina D. Romer: ''What do we know about the effects of fiscal policy?'', Lecture at Hamilton College, November 7, 2011]</ref> | |||
<ref>[http://ec.europa.eu/economy_finance/publications/economic_paper/2012/pdf/ecp460_en.pdf Jocelyn Boussard, Francisco de Castro and Matteo Salto: ''Fiscal Multipliers and Public Debt Dynamics in Consolidations'', European Commission, July 2012]</ref>. | |||
{{reflist}} | |||
Revision as of 06:15, 12 November 2012
Christine Romer has argued that that it is "incredibly hard" to estimate the value of a multiplier because fiscal actions are often taken in response to other things happening in the economy, and separating the impact of those other factors from the impact of fiscal change very difficult. Failure to do so can result in omitted-variable bias resulting in an underestimate of the multiplier - an error that Ms Romer believes to be common. [1]
[2].