This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
American Economic Journal: Economic Policy: Vol. 4 No. 2 (May 2012)
AEJ: Policy Volume. 4, Issue 2 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)
AEJ: Policy Forthcoming Articles
Full-text Article
Download Data Set (2.97 MB)
View Comments on This Article (0) | Login to post a comment
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)
Explore:
AEJ: Policy Forthcoming Articles
A Model-Based Evaluation of the Debate on the Size of the Tax Multiplier
Article Citation
Chahrour, Ryan,
Stephanie Schmitt-Grohé, and
Martín Uribe. 2012. "A Model-Based Evaluation of the Debate on the Size of the Tax Multiplier."
American Economic Journal: Economic Policy,
4(2): 28-45.
DOI: 10.1257/pol.4.2.28
DOI: 10.1257/pol.4.2.28
Abstract
The SVAR and narrative approaches to estimating tax multipliers deliver significantly different results. The former yields multipliers of about 1 and the latter of about 3. The two approaches differ along two important dimensions: the identification scheme and the reduced-form transmission mechanism. This paper uses a DSGE-model
to evaluate the hypothesis that the difference in multipliers is due to differences in transmission mechanisms. The main finding of the paper is that this hypothesis is rejected. Instead, the observed differences in estimated multipliers are due either to the models failing to identify the same tax shock, or to small-sample uncertainty.
(JEL E13, E23, E32, E62, H20)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (2.97 MB)
Authors
Chahrour, Ryan (Columbia U)
Schmitt-Grohé, Stephanie (Columbia U)
Uribe, Martín (Columbia U)
Schmitt-Grohé, Stephanie (Columbia U)
Uribe, Martín (Columbia U)
JEL Classifications
E13: General Aggregative Models: Neoclassical
E23: Macroeconomics: Production
E32: Business Fluctuations; Cycles
E62: Fiscal Policy
H20: Taxation, Subsidies, and Revenue: General
E23: Macroeconomics: Production
E32: Business Fluctuations; Cycles
E62: Fiscal Policy
H20: Taxation, Subsidies, and Revenue: General
Comments
View Comments on This Article (0) | Login to post a comment
