Robert M. La Follette School of Public Affairs

Fiscal Multipliers

The author looks at the concept of fiscal multipliers in the context of major theoretical approaches. He then recounts differing methods of calculating multipliers (structural equations, VAR, simulation) and discusses the sensitivity of estimates to conditioning on the state of the economy (slack, financial system) and policy regimes (exchange rate system, monetary policy reaction function).

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2013-002
  • Author(s): Menzie D. Chinn