IDEAS home Printed from https://ideas.repec.org/p/tkk/dpaper/dp54.html
   My bibliography  Save this paper

The fiscal multiplier: positive or negative?

Author

Listed:
  • Juha Tervala

Abstract

This study examines whether the fiscal multiplier can be negative for certain types of government spending. The key result is that the fiscal multiplier can be negative if there is a high degree of substitutability between private and government consumption and government consumption is complementary to leisure.

Suggested Citation

  • Juha Tervala, 2009. "The fiscal multiplier: positive or negative?," Discussion Papers 54, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp54
    as

    Download full text from publisher

    File URL: http://www.ace-economics.fi/kuvat/dp54.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    fiscal policy; fiscal multiplier; effectiveness of fiscal policy;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tkk:dpaper:dp54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Susmita Baulia (email available below). General contact details of provider: https://edirc.repec.org/data/tukkkfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.