Fiscal policy: post- or New Keynesian?

Artikel

This paper asks whether the post-Keynesian or New Keynesian paradigm provides a more realistic description of the effects of fiscal policy on output and consumption. I establish some macro and microeconomic stylized facts on fiscal multipliers and marginal propensities to consume based on the extensive empirical literature. I compare them to basic and extended modelling approaches within the two traditions. The picture is mixed and points to shortcomings in both paradigms. I outline the elements they could learn from each other as well as from some other strands in the literature to create a coherent and convincing Keynesian macro-micro framework of fiscal policy modelling.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 20 ; Year: 2023 ; Issue: 2 ; Pages: 338-355

Classification and Topics

• Classification: Wirtschaft ; Household Behavior: General ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data) ; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General ; Fiscal Policies and Behavior of Economic Agents: General
• Subject: macroeconomics ; fiscal policy ; history of economic thought ; multiplier ; marginal propensity to consume

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gechert, Sebastian
• Event: Veröffentlichung
• (who): Edward Elgar Publishing
• (where): Cheltenham
• (when): 2023

Further information

• DOI: doi:10.4337/ejeep.2023.0120
• Handle: http://hdl.handle.net/10419/284335
• Last update: 10.03.2025, 11:44 AM CET