Résumé
This paper provides an analytical characterization of the effects of noisy news shocks on fiscal policy. We consider a small-scale Dynamic Stochastic General Equilibrium (DSGE) model with capital accumulation and endogenous labor supply and show that noise dampens the propagation of anticipated fiscal policy over the business cycle, thus reducing the fiscal multiplier.
Mots-clés
Government spending shocks; Expected shocks; Noisy Information; DSGE Models;
Codes JEL
- C32: Time-Series Models • Dynamic Quantile Regressions • Dynamic Treatment Effect Models • Diffusion Processes
- E62: Fiscal Policy
Remplacé par
Patrick Fève, Tannous Kass-Hanna et Mario Pietrunti, « An Analytical Characterization of Noisy Fiscal Policy », Economics Letters, Elsevier, vol. 148, novembre 2016, p. 76–79.
Référence
Patrick Fève, Tannous Kass-Hanna et Mario Pietrunti, « An Analytical Characterization of Noisy Fiscal Policy », TSE Working Paper, n° 16-696, septembre 2016.
Voir aussi
Publié dans
TSE Working Paper, n° 16-696, septembre 2016