Date of Award
1-1-2019
Document Type
Masters Thesis
Degree Name
M.A.
Organizational Unit
College of Arts Humanities and Social Sciences, Economics
First Advisor
Yavuz Yasar, Ph.D.
Keywords
Econometrics, Fiscal policy, Government spending multiplier, History of economic thought, Monetary policy
Abstract
This thesis reviews the major theoretical frameworks and their outlook on the government spending, its effectiveness, the implied size of the multiplier and how they differed in empirical studies. This is followed by an estimation of the government multiplier for the major U.S. fiscal policy, namely the American Recovery and Reinvestment Act (ARRA), after the Great Recession of 2007-2009. Own estimation of the size of the multiplier is presented using a standard SVAR model based on New Keynesian approach for time period between 2009 and 2018. In addition, following the classical economic theory, the multiplier is recalculated in the absence of Finance, Insurance, and Real Estate (FIRE) sector which is considered to be unproductive sector since it does not add value according to the classical theory. I find the multiplier to be below unity during this period with the exception when the FIRE industries are excluded.
Publication Statement
Copyright is held by the author. User is responsible for all copyright compliance.
Rights Holder
Daniel Focht
Provenance
Received from ProQuest
File Format
application/pdf
Language
en
File Size
105 p.
Recommended Citation
Focht, Daniel, "The Size of the Multiplier: Comparing Alternate Views After the Great Recession" (2019). Electronic Theses and Dissertations. 1658.
https://digitalcommons.du.edu/etd/1658
Data Set
Copyright date
2019
Discipline
Economics