Tag Archives: Stimulus

Do Banks Pass Through Credit Expansions? The Marginal Profitability of Consumer Lending During the Great Recession

Posted on July 9, 2015 by

From Sumit Agarwal, Souphala Chomsisengphet, Neale Mahoney, and Johannes Stroebel: The effect of bank-mediated stimulus on household borrowing depends on whether banks pass through credit expansions to households with a high marginal propensity to borrow (MPB). We use panel data on … Continue reading →

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Are State Governments Roadblocks to Federal Stimulus? Evidence from Highway Grants in the 2009 Recovery Act

Posted on July 30, 2013 by

From Sylvain Leduc and Dan Wilson: We examine how state governments adjusted spending in response to the large temporary increase in federal grants under the 2009 American Recovery and Reinvestment Act (ARRA). We concentrate our analysis on ARRA highway grants, which … Continue reading →

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Larry Summers on “The Fiscal and Economic Effects of Austerity”

Posted on June 4, 2013 by

From Larry Summers: Thank you for the opportunity to speak before this committee. You have chosen to address issues relating to austerity at an opportune time as both our economic and our budget situations are in considerable flux and as … Continue reading →

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Fiscal Policy and MPC Heterogeneity

Posted on February 27, 2013 by

Tullio Jappelli and Luigi Pistaferri have a recent paper called Fiscal Policy and MPC Heterogeneity. Here’s an interesting figure from it that shows how MPC varies by cash-on-hand: They aren’t the only ones who document MPC heterogeneity. Dynan, Skinner, Zeldes  have a … Continue reading →

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Tax Cuts for Whom? Do tax changes for high income taxpayers generate more growth than similarly sized tax changes for lower income taxpayers?

Posted on February 14, 2013 by

        This figure, which is from a recently revised and submitted paper of mine, shows how the multiplier varies across the income distribution. It shows that equivalently sized tax changes for lower income groups have larger macroeconomic impacts on … Continue reading →

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The Pace of the Recovery: Output and Employment Growth Since 1985

Posted on December 14, 2012 by

Laura Tyson has a piece today on the slow pace of the recovery: Since 2010, annual growth of gross domestic product has averaged about 2.1 percent. This is less than half the average pace of recoveries from previous recessions in … Continue reading →

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Fiscal Policy and Economic Recovery: The Case of the 1936 Veterans’ Bonus

Posted on December 6, 2012 by

Josh Hausman, an economics job market candidate from Berkeley, has a guest post on Miles Kimball’s blog that’s worth checking out: An excellent historical analogy to Miles’s Federal Lines of Credit proposal are the 1931 loans to World War I veterans that I … Continue reading →

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