When is the government transfer multiplier large ? (English)

Transfers to individuals were a larger part of the 2009 U.S. stimulus package than government purchases. Using a two-agent New Keynesian model, this paper shows analytically that the multiplier on targeted transfers to financially constrained households is (i) larger than the purchase multiplier if the zero lower bound (ZLB) binds, and (ii) is more sensitive to the degree of monetary accommodation of inflation. Targeted transfers provide the same...

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Author

Giambattista,Eric;

Pennings,Steven Michael;
Document Date
2017/09/06
Document Type
Policy Research Working Paper
Report Number
WPS8184
Volume No
1
Total Volume(s)
1
Country
World,
Region
Other,
Disclosure Date
2017/09/06
Disclosure Status
Disclosed
Doc Name
When is the government transfer multiplier large ?
Keywords
rate of return on capital

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Citation

Giambattista,Eric; Pennings,Steven Michael.

When is the government transfer multiplier large ? (English). Policy Research working paper|no. WPS 8184 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/786831504723306335

When is the government transfer multiplier large ? (English)

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