Arbeitspapier
Government expenditures and unemployment: A DSGE perspective
In a New Keynesian DSGE model with labor market frictions and liquidity-constrained consumers aggregate unemployment is likely to increase due to a non-persistent government spending shock. Furthermore, the group of asset-holding households reacts very differently from the group of liquidity-constrained consumers implying that the unemployment rate is likely to decrease for asset-holding households, while it increases among liquidity-constrained consumers. The main driver of our results is the marginal utility of consumption which moves in opposite directions for the two types. Regarding the model's parameters, we find that the size of the fiscal (unemployment) multiplier increases with i) highly sticky prices, ii) high degrees of risk aversion, iii) low convexity in labor disutility iv) high replacement rates, and v) debt-financed expenditures.
- ISBN
-
978-3-86558-641-4
- Sprache
-
Englisch
- Erschienen in
-
Series: Discussion Paper Series 1 ; No. 2010,18
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Unemployment: Models, Duration, Incidence, and Job Search
Fiscal Policy
- Thema
-
Search and matching
government spending shocks
unemployment
Öffentliche Ausgaben
Schock
Multiplikator
Arbeitslosigkeit
Ungleichgewichtstheorie
Dynamisches Gleichgewicht
Verschuldungsrestriktion
Arbeitsmarkttheorie
Matching
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Mayer, Eric
Moyen, Stéphane
Stähler, Nikolai
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsche Bundesbank
- (wo)
-
Frankfurt a. M.
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Mayer, Eric
- Moyen, Stéphane
- Stähler, Nikolai
- Deutsche Bundesbank
Entstanden
- 2010