skip to primary navigationskip to content
 

CF workshop - Giancarlo Corsetti

When Nov 02, 2010
from 05:00 PM to 06:00 PM
Where Winstanley Lecture Theatre, Trinity College
Contact Name
Add event to calendar vCal
iCal

Prof Giancarlo Corsetti (Faculty of Economics) presenting.

Title: What determines government spending multipliers?

Abstract: Theory predicts that the effect of fiscal expansion varies with the economic environment, notably the monetary and exchange rate regime, the state of public finances, and the health of the financial system. Using a panel of OECD countries, we evaluate the issue empirically, focusing on the macroeconomic effects of government consumption. Fiscal shocks are identified as residuals from an estimated government spending rule. These shocks are then interacted with conditioning variables in order to explain macroeconomic outcomes across a range of economic environments. Without such interactions, the unconditional responses to a spending shock are in line with earlier results, featuring a positive, if relatively small output multiplier, no significant movement in consumption, and a fall in investment and the trade balance. Yet these average results mask important differences across environments. In particular, the responses of the real exchange rate and net exports vary systematically across exchange rate regimes, with real appreciation and external deficits emerging mainly under a currency peg. Output and consumption multipliers, in turn, become quite sizeable during times of financial crisis.

« February 2017 »
February
MoTuWeThFrSaSu
12345
6789101112
13141516171819
20212223242526
2728

RSS Feed Latest news

CERF PhD Scholarship competition 2017 - now closed

Nov 08, 2016

For the fifth year, Cambridge Endowment for Research in Finance is offering a scholarship scheme.

View all news

Upcoming events

Cambridge Finance Workshop - H. Peyton Young

Mar 09, 2017

Room W4.03, Cambridge Judge Business School

Cambridge Finance Workshop - Erwan Morellec

May 04, 2017

Room W4.03, Cambridge Judge Business School

Previous events

Upcoming events