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Journal of Political Economy· 2017Q1

Government Spending Multipliers in Good Times and in Bad: Evidence from US Historical Data

Valerie Ramey, Sarah Zubairy

Short summary

US government spending multipliers are below unity regardless of economic slack, but may reach 1.5 near the zero lower bound.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance