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The role of expenditure duration in fiscal multipliers over the business cycle

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  • Schendstok, Matthijs

Abstract

Projects funded by the Department of Transportation that are authorized to begin construction during periods of slack are completed more quickly than during expansions. The results suggest fiscal multipliers of authorized funds may vary over the business cycle.

Suggested Citation

  • Schendstok, Matthijs, 2021. "The role of expenditure duration in fiscal multipliers over the business cycle," Economics Letters, Elsevier, vol. 198(C).
    • Handle: RePEc:eee:ecolet:v:198:y:2021:i:c:s0165176520304201
    DOI: 10.1016/j.econlet.2020.109660
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    References listed on IDEAS

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    1. Alan J. Auerbach & Yuriy Gorodnichenko, 2012. "Measuring the Output Responses to Fiscal Policy," American Economic Journal: Economic Policy, American Economic Association, vol. 4(2), pages 1-27, May.
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    4. Michael T. Owyang & Valerie A. Ramey & Sarah Zubairy, 2013. "Are government spending multipliers greater during periods of slack? evidence from 20th century historical data," Working Papers 2013-004, Federal Reserve Bank of St. Louis.
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    6. Valerie A. Ramey & Sarah Zubairy, 2018. "Government Spending Multipliers in Good Times and in Bad: Evidence from US Historical Data," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 850-901.
    7. Michael T. Owyang & Valerie A. Ramey & Sarah Zubairy, 2013. "Are Government Spending Multipliers Greater during Periods of Slack? Evidence from Twentieth-Century Historical Data," American Economic Review, American Economic Association, vol. 103(3), pages 129-134, May.
    8. Emi Nakamura & J?n Steinsson, 2014. "Fiscal Stimulus in a Monetary Union: Evidence from US Regions," American Economic Review, American Economic Association, vol. 104(3), pages 753-792, March.
    9. Valerie Ramey & Sarah Zubairy & Michael Owyang, 2013. "Are Government Spending Multipliers State Dependent? Evidence from U.S. and Canadian Historical Data," 2013 Meeting Papers 290, Society for Economic Dynamics.
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    Cited by:

    1. Li, Mingyang & Niu, Linlin, 2021. "Faster fiscal stimulus and a higher government spending multiplier in China: Mixed-frequency identification with SVAR," Economics Letters, Elsevier, vol. 209(C).

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    More about this item

    Keywords

    Fiscal policy; Fiscal multipliers; Duration analysis; Infrastructure;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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