289
Views
7
CrossRef citations to date
0
Altmetric
ARTICLES

An additional explanation for the variable Keynesian multiplier: The role of the propensity to import

References

  • Aftalion, A. “La réalité des surproductions générales: essai d’une théorie des crises générales et périodiques.” Revue d’Économie Politique, 1908, 23, 81–117.
  • Alesina, A. and Perotti, R. “Fiscal Adjustments in OECD Countries: Composition and Macroeconomic Effects.” IMF Staff Papers, 1997, 4, 210–248.
  • Auerbach, A.J., and Gorodnichenko, Y. “Measuring the Output Responses to Fiscal Policy.” American Economic Journal: Economic Policy, 2012, 4 (2), 1–27.
  • Auerbach, A.J., and Gorodnichenko, Y. “Output Spillovers from Fiscal Policy.” American Economic Review, 2013, 103, 141–146.
  • Bagnai, A., and Carlucci, F. “An Aggregate Model for the European Union.” Economic Modelling, 2003, 20, 623–649.
  • Ball, R.J. “The Significance of Simultaneous Methods of Parameter Estimation in Econometric Models.” Journal of the Royal Statistical Society (Applied Statistics), 1963, 12, 14–25.
  • Barro, J.R. “Are Government Bonds Net Wealth?” Journal of Political Economy, 1974, 82, 1095–1117.
  • Barro, J.R. “Output Effects of Government Purchases,” Journal of Political Economy, 1981, 89, 1086–1121.
  • Baum, A., and Koester, G.B. “The Impact of Fiscal Policy on Economic Activity over the Business Cycle: Evidence from a Threshold VAR Analysis.” Deutsche Bundesbank Discussion Paper Series 1: Economic Studies, 2011, no. 3.
  • Baxter, M., and King, R.G. “Fiscal Policy in General Equilibrium.” American Economic Review, 1993, 83, 315–334.
  • Biau, O., and Girard, E. “Politique budgétaire et dynamique economique en France: l’approche VAR structurel.” Revue Economique, 2005, 56, 755–764.
  • Blanchard, O.J., and Leigh, D. “Growth Forecast Errors and Fiscal Multipliers.” American Economic Review, 2013, 103, 117–120.
  • Blanchard, O.J., and Perotti, R. “An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output.” Quarterly Journal of Economics, 2002, 117, 1329–1368.
  • Burriel, P.; de Castro, F.; Garrote, D.; Gordo, E.; Paredes, J.; and Perez, J.J. “Fiscal Policy Shocks in the Euro Area and the US: An Empirical Assessment.” Fiscal Studies, 2010, 31, 251–285.
  • Bussière, M.; Callegari, G.; Ghironi, F.; Sestieri, G.; and Yamano, N. “Estimating Trade Elasticities: Demand Composition and the Trade Collapse of 2008–9.” American Economic Journal: Macroeconomics, 2013, 5, 118–151.
  • Cerda, R.A.; Gonzalez, H.; and Lagos, L.F. “Is Fiscal Policy Effective? Evidence for an Emerging Economy: Chile 1833–2000.” Applied Economics Letters, 2006, 13, 575–580.
  • Charles, S. “Corporate Debt, Variable Retention Rate and the Appearance of Financial Fragility.” Cambridge Journal of Economics, 2008, 32, 781–795.
  • Charles, S. “Explaining Persistent Cycles in a Short-Run Context: Firms’ Propensity to Invest and Omnipotent Shareholders.” Journal of Post Keynesian Economics, 2010, 32, 409–425.
  • Charles, S.; Dallery, T.; Marie, J. “Why are Keynesian Multipliers Bigger in Hard Times? A Palley–Aftalion–Pasinetti Explanation.” Fourth Congress of the FAPE, July 2–4, 2014. ENS Cachan, Paris (available at http://afep2014.sciencesconf.org/33825/document)
  • ———. “Why the Keynesian Multiplier Increases During Hard Times: A Theoretical Explanation Based on Rentiers’ Saving Behaviour.” Metroeconomica, 2015, 66, 451–473.
  • Clark, J.M. “Business Acceleration and the Law of Demand: A Technical Factor in Economic Cycles.” Journal of Political Economy, 1917, 25, 217–235.
  • Cogan, J.F.; Cwik, T.; Taylor, J.B.; and Wieland, V. “New Keynesian Versus Old Keynesian Government Spending Multipliers.” Journal of Economic Dynamics and Control, 2010, 34, 281–295.
  • Creel, J.; Heyer, E.; and Plane, M. “Petit précis de politique budgétaire par tous les temps: les multiplicateurs budgétaires au cours du cycle.” Revue de l’OFCE, 2011, 116, 61–88.
  • Davidson, P. “Making Dollars and Sense of the U.S. Government Debt.” Journal of Post Keynesian Economics, 2010, 32, 661–665.
  • Dutt, A.K. “Stagnation, Income Distribution and Monopoly Power.” Cambridge Journal of Economics, 1984, 8, 25–40.
  • ———. “Interest Rate Policy in LDCs: A Post Keynesian View.” Journal of Post Keynesian Economics, 1991, 13, 210–232.
  • ———. “Distributional Dynamics in Post-Keynesian Growth Models.” Journal of Post Keynesian Economics, 2012, 34, 431–451.
  • Evans, M.K. “Multiplier Analysis of a Post-War Quarterly U.S. Model and a Comparison with Several Other Models.” Review of Economic Studies, 1966, 33, 337–360.
  • ———. “Reconstruction and Estimation of the Balanced Budget Multiplier.” Review of Economics and Statistics, 1969, 51, 14–25.
  • Fazzari, S.M., and Minsky, H.P. “Domestic Monetary Policy: If Not Monetarism, What?” Journal of Economic Issues, 1984, 18, 101–116.
  • Fazzari, S.M.; Morley, J.; and Panovska, I. “State-Dependent Effects of Fiscal Policy.” Studies in Nonlinear Dynamics and Econometrics, 2015. 19, 285–315.
  • Fisher, J.D.M., and Peters, R. “Using Stock Returns to Identify Government Spending Shocks.” Economic Journal, 2010, 120, 414–436.
  • Freedman, C.; Kumhof, M.; Laxton, D.; and Lee, J. “The Case for Global Fiscal Stimulus.” IMF Staff Position Note, March 2009.
  • Gechert, S., and Will, H. “Fiscal Multipliers: A Meta Regression Analysis.” IMK Working Paper, 2012, no. 97.
  • Giavazzi, F., and Pagano, M. “Can Severe Fiscal Contractions Be Expansionary? Tales of Two Small European Countries.” NBER Macroeconomics Annual, 1990, 5, 75–122.
  • Gordon, R.J., and Krenn, R. “The End of the Great Depression 1939–41: Policy Contributions and Fiscal Multipliers.” NBER Working Paper, 2010, no. 16380.
  • Hein, E., and Schoder, C. “Interest Rates, Distribution and Capital Accumulation: A Post-Kaleckian Perspective on the US and Germany.” International Review of Applied Economics, 2011, 25, 693–723.
  • Hernandez de Cos, P., and Moral-Benito, E. “Fiscal Multipliers in Turbulent Times: The Case of Spain.” Bank of Spain Working Paper, 2013, no. 1309.
  • Kahn, R.F. “The Relation of Home Investment to Unemployment.” Economic Journal, 1931, 41, 173–198.
  • Keynes, J.M. The General Theory of Unemployment, Interest and Money. London: Macmillan, 1936.
  • Klein, L.R., and Goldberger, A.S. An Econometric Model of the United States, 1929–1952, Amsterdam: North Holland, 1955.
  • Laski, K.; Osiatynski, J.; and Zieba, J. “The Government Expenditure Multiplier and Its Estimates for Poland in 2006–2009.” Vienna Institute for International Economic Studies Working Paper, 2010, no. 63.
  • Levchenko, A.A.; Lewis, L.T.; and Tesar, L.L. “The Collapse of International Trade During the 2008–09 Crisis: In Search of the Smoking Gun.” IMF Economic Review, 2010, 58, 214–253.
  • Maddison, A. Dynamic Forces in Capitalist Development: A Long Run Comparative View. Oxford: Oxford University Press, 1991.
  • Marcellino, M. “Some Stylised Facts on non-Systematic Fiscal Policy in the Euro Area.” Journal of Macroeconomics, 2006, 28, 461–479.
  • Mountford, A., and Uhlig, H. “What Are the Effects of Fiscal Policy Shocks?” Journal of Applied Econometrics, 2009, 24, 960–992.
  • Palley, T.I. “Imports and the Income-Expenditure Model: Implications for Fiscal Policy and Recession Fighting.” Journal of Post Keynesian Economics, 2009, 32, 311–322.
  • ———. “Wealth and Wealth Distribution in the Neo-Kaleckian Growth Model.” Journal of Post Keynesian Economics, 2012, 34, 453–474.
  • ———. “Cambridge and Neo-Kaleckian Growth and Distribution Theory: Comparison with an Application to Fiscal Policy.” Review of Keynesian Economics, 2013, 1, 79–104.
  • Parker, J.A. “On Measuring the Effects of Fiscal Policy in Recessions.” Journal of Economic Literature, 2011, 49, 703–718.
  • Perotti, R. “Estimating the Effects of Fiscal Policy in OECD Countries.” CEPR Discussion Paper, 2005, no. 4842.
  • Pusch, T. “Fiscal Spending Multiplier Calculations Based on Input-Output Tables: An Application to EU Member States.” European Journal of Economics and Economic Policies: Intervention, 2012, 9, 129–144.
  • Ramey, V.A. “Identifying Government Spending Shocks: It’s All in the Timing.” Quarterly Journal of Economics, 2011, 126, 1–50.
  • Romer, C., Bernstein, J. “The Job Impact of the American Recovery and Reinvestment Plan.” Council of Economic Advisers, January 2009.
  • Sarantis, N. “Distribution and Terms of Trade Dynamics, Inflation, and Growth.” Journal of Post Keynesian Economics, 1991, 13, 175–198.
  • Skott, P., and Ryoo, S. “Macroeconomic Implications of Financialisation.” Cambridge Journal of Economics, 2008, 32, 827–862.
  • Stockhammer, E., and Qazizada, W. “Government Spending Multipliers in Contraction and Expansion.” International Review of Applied Economics, 2015, 29, 238–258.
  • Taylor, L. Structuralist Macroeconomics. New York: Basic Books, 1983.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.