Simple Analytics of the Government Expenditure Multiplier
This paper explains the key factors that determine the output multiplier of government purchases in New Keynesian models, through a series of simple examples that can be solved analytically. Sticky prices or wages allow for larger multipliers than in a neoclassical model though the size of the multi...
Gespeichert in:
| Veröffentlicht in: | American economic journal. Macroeconomics 2011-01, Vol.3 (1), p.1-35 |
|---|---|
| 1. Verfasser: | |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 35 |
|---|---|
| container_issue | 1 |
| container_start_page | 1 |
| container_title | American economic journal. Macroeconomics |
| container_volume | 3 |
| creator | Woodford, Michael |
| description | This paper explains the key factors that determine the output multiplier of government purchases in New Keynesian models, through a series of simple examples that can be solved analytically. Sticky prices or wages allow for larger multipliers than in a neoclassical model though the size of the multiplier depends crucially on the monetary policy response. A multiplier well in excess of one is possible when monetary policy is constrained by the zero lower bound, and in this case welfare increases if government purchases expand to partially fill the output gap that arises from the inability to lower interest rates. |
| doi_str_mv | 10.1257/mac.3.1.1 |
| format | Article |
| fullrecord | <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_journals_871991451</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>41237130</jstor_id><sourcerecordid>41237130</sourcerecordid><originalsourceid>FETCH-LOGICAL-c442t-a5d7d6235b76b4d2526b2633296ebbef7b180ff71796e22ac659d68db3c474803</originalsourceid><addsrcrecordid>eNo90E1Lw0AQBuBFFKzVgz9ACN48JO7s1yTHUmoVKh7U85JNNpiQL3c3Yv-9KZWeZhgeXoaXkFugCTCJj11eJDyBBM7IAjIhY0SQ56ed4iW58r6hVHHFcUGy97obWxut-rzdh7rw0VBF4ctG2-HHur6zfYg2v6PtyzpMzkavUxvqsa2tuyYXVd56e_M_l-TzafOxfo53b9uX9WoXF0KwEOeyxFIxLg0qI0ommTJMcc4yZY2xFRpIaVUh4HxgLC-UzEqVloYXAkVK-ZLcH3NHN3xP1gfdDJOb3_U6RcgyEBJm9HBEhRu8d7bSo6u73O01UH0oRs_FaK5BH-zd0TY-DO4EBTCOwCn_AxKbXtE</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>871991451</pqid></control><display><type>article</type><title>Simple Analytics of the Government Expenditure Multiplier</title><source>JSTOR Archive Collection A-Z Listing</source><source>American Economic Association</source><creator>Woodford, Michael</creator><creatorcontrib>Woodford, Michael</creatorcontrib><description>This paper explains the key factors that determine the output multiplier of government purchases in New Keynesian models, through a series of simple examples that can be solved analytically. Sticky prices or wages allow for larger multipliers than in a neoclassical model though the size of the multiplier depends crucially on the monetary policy response. A multiplier well in excess of one is possible when monetary policy is constrained by the zero lower bound, and in this case welfare increases if government purchases expand to partially fill the output gap that arises from the inability to lower interest rates.</description><identifier>ISSN: 1945-7707</identifier><identifier>EISSN: 1945-7715</identifier><identifier>DOI: 10.1257/mac.3.1.1</identifier><language>eng</language><publisher>Pittsburgh: American Economic Association</publisher><subject>Central banks ; Economic models ; Equilibrium ; Expenditures ; Fiscal stimulus ; Government expenditures ; Government purchases ; Government spending ; Households ; Inflation rates ; Interest rates ; Keynesianism ; Macroeconomics ; Monetary policy ; Output gaps ; Studies ; Tax collections ; Wages & salaries</subject><ispartof>American economic journal. Macroeconomics, 2011-01, Vol.3 (1), p.1-35</ispartof><rights>Copyright © 2011 American Economic Association</rights><rights>Copyright American Economic Association Jan 2011</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c442t-a5d7d6235b76b4d2526b2633296ebbef7b180ff71796e22ac659d68db3c474803</citedby><cites>FETCH-LOGICAL-c442t-a5d7d6235b76b4d2526b2633296ebbef7b180ff71796e22ac659d68db3c474803</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/41237130$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/41237130$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,780,784,803,3748,27924,27925,58017,58250</link.rule.ids></links><search><creatorcontrib>Woodford, Michael</creatorcontrib><title>Simple Analytics of the Government Expenditure Multiplier</title><title>American economic journal. Macroeconomics</title><description>This paper explains the key factors that determine the output multiplier of government purchases in New Keynesian models, through a series of simple examples that can be solved analytically. Sticky prices or wages allow for larger multipliers than in a neoclassical model though the size of the multiplier depends crucially on the monetary policy response. A multiplier well in excess of one is possible when monetary policy is constrained by the zero lower bound, and in this case welfare increases if government purchases expand to partially fill the output gap that arises from the inability to lower interest rates.</description><subject>Central banks</subject><subject>Economic models</subject><subject>Equilibrium</subject><subject>Expenditures</subject><subject>Fiscal stimulus</subject><subject>Government expenditures</subject><subject>Government purchases</subject><subject>Government spending</subject><subject>Households</subject><subject>Inflation rates</subject><subject>Interest rates</subject><subject>Keynesianism</subject><subject>Macroeconomics</subject><subject>Monetary policy</subject><subject>Output gaps</subject><subject>Studies</subject><subject>Tax collections</subject><subject>Wages & salaries</subject><issn>1945-7707</issn><issn>1945-7715</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2011</creationdate><recordtype>article</recordtype><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><recordid>eNo90E1Lw0AQBuBFFKzVgz9ACN48JO7s1yTHUmoVKh7U85JNNpiQL3c3Yv-9KZWeZhgeXoaXkFugCTCJj11eJDyBBM7IAjIhY0SQ56ed4iW58r6hVHHFcUGy97obWxut-rzdh7rw0VBF4ctG2-HHur6zfYg2v6PtyzpMzkavUxvqsa2tuyYXVd56e_M_l-TzafOxfo53b9uX9WoXF0KwEOeyxFIxLg0qI0ommTJMcc4yZY2xFRpIaVUh4HxgLC-UzEqVloYXAkVK-ZLcH3NHN3xP1gfdDJOb3_U6RcgyEBJm9HBEhRu8d7bSo6u73O01UH0oRs_FaK5BH-zd0TY-DO4EBTCOwCn_AxKbXtE</recordid><startdate>20110101</startdate><enddate>20110101</enddate><creator>Woodford, Michael</creator><general>American Economic Association</general><scope>AAYXX</scope><scope>CITATION</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FRNLG</scope><scope>F~G</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20110101</creationdate><title>Simple Analytics of the Government Expenditure Multiplier</title><author>Woodford, Michael</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c442t-a5d7d6235b76b4d2526b2633296ebbef7b180ff71796e22ac659d68db3c474803</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2011</creationdate><topic>Central banks</topic><topic>Economic models</topic><topic>Equilibrium</topic><topic>Expenditures</topic><topic>Fiscal stimulus</topic><topic>Government expenditures</topic><topic>Government purchases</topic><topic>Government spending</topic><topic>Households</topic><topic>Inflation rates</topic><topic>Interest rates</topic><topic>Keynesianism</topic><topic>Macroeconomics</topic><topic>Monetary policy</topic><topic>Output gaps</topic><topic>Studies</topic><topic>Tax collections</topic><topic>Wages & salaries</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Woodford, Michael</creatorcontrib><collection>CrossRef</collection><collection>ProQuest Central (Corporate)</collection><collection>Access via ABI/INFORM (ProQuest)</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>One Business (ProQuest)</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central Basic</collection><jtitle>American economic journal. Macroeconomics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Woodford, Michael</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Simple Analytics of the Government Expenditure Multiplier</atitle><jtitle>American economic journal. Macroeconomics</jtitle><date>2011-01-01</date><risdate>2011</risdate><volume>3</volume><issue>1</issue><spage>1</spage><epage>35</epage><pages>1-35</pages><issn>1945-7707</issn><eissn>1945-7715</eissn><abstract>This paper explains the key factors that determine the output multiplier of government purchases in New Keynesian models, through a series of simple examples that can be solved analytically. Sticky prices or wages allow for larger multipliers than in a neoclassical model though the size of the multiplier depends crucially on the monetary policy response. A multiplier well in excess of one is possible when monetary policy is constrained by the zero lower bound, and in this case welfare increases if government purchases expand to partially fill the output gap that arises from the inability to lower interest rates.</abstract><cop>Pittsburgh</cop><pub>American Economic Association</pub><doi>10.1257/mac.3.1.1</doi><tpages>35</tpages><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 1945-7707 |
| ispartof | American economic journal. Macroeconomics, 2011-01, Vol.3 (1), p.1-35 |
| issn | 1945-7707 1945-7715 |
| language | eng |
| recordid | cdi_proquest_journals_871991451 |
| source | JSTOR Archive Collection A-Z Listing; American Economic Association |
| subjects | Central banks Economic models Equilibrium Expenditures Fiscal stimulus Government expenditures Government purchases Government spending Households Inflation rates Interest rates Keynesianism Macroeconomics Monetary policy Output gaps Studies Tax collections Wages & salaries |
| title | Simple Analytics of the Government Expenditure Multiplier |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-12-25T04%3A19%3A06IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Simple%20Analytics%20of%20the%20Government%20Expenditure%20Multiplier&rft.jtitle=American%20economic%20journal.%20Macroeconomics&rft.au=Woodford,%20Michael&rft.date=2011-01-01&rft.volume=3&rft.issue=1&rft.spage=1&rft.epage=35&rft.pages=1-35&rft.issn=1945-7707&rft.eissn=1945-7715&rft_id=info:doi/10.1257/mac.3.1.1&rft_dat=%3Cjstor_proqu%3E41237130%3C/jstor_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=871991451&rft_id=info:pmid/&rft_jstor_id=41237130&rfr_iscdi=true |