{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/desperate-times-call-for-desperate-measures","title":"Desperate times call for desperate measures: government spending multipliers in hard times","arxiv_id":"1909.09824","date":"2020-05-28","proceeding":null,"authors":[],"abstract":"We investigate state-dependent effects of fiscal multipliers and allow for\nendogenous sample splitting to determine whether the US economy is in a slack\nstate. When the endogenized slack state is estimated as the period of the\nunemployment rate higher than about 12 percent, the estimated cumulative\nmultipliers are significantly larger during slack periods than non-slack\nperiods and are above unity. We also examine the possibility of time-varying\nregimes of slackness and find that our empirical results are robust under a\nmore flexible framework. Our estimation results point out the importance of the\nheterogenous effects of fiscal policy and shed light on the prospect of fiscal\npolicy in response to economic shocks from the current COVID-19 pandemic.","url_abs":"http://arxiv.org/abs/1909.09824v3","url_pdf":"http://arxiv.org/pdf/1909.09824v3.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"desperate-times-call-for-desperate-measures","repo_url":"https://github.com/yshin12/llss-rz","is_official":1,"mentioned_in_paper":1,"mentioned_in_github":0,"framework":"none","reach":null}],"tasks":[{"task_slug":"unity","task_name":"Unity"}],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}