Report
Sticky price models of the business cycle: can the contract multiplier solve the persistence problem?
Kehoe, Patrick J.; Chari, V. V.; McGrattan, Ellen R. (1998)
We construct a quantitative equilibrium model with price setting and use it to ask whether with staggered price setting monetary shocks can generate business cycle fluctuations. These fluctuations include persistent output fluctuations along with the other defining features of business cycles, like volatile investment and smooth consumption. We assume that prices are exogenously sticky for a short period of time. Persistent output fluctuations require endogenous price stickiness in the sense that firms choose not to change prices very much when they can do so. We find that for a wide range of ...
Staff Report , Paper 217

Working Paper
Are government spending multipliers greater during periods of slack? evidence from 20th century historical data
Ramey, Valerie A.; Zubairy, Sarah; Owyang, Michael T. (2013)
A key question that has arisen during recent debates is whether government spending multipliers are larger during times when resources are idle. This paper seeks to shed light on this question by analyzing new quarterly historical data covering multiple large wars and depressions in the U.S. and Canada. Using an extension of Ramey?s (2011) military news series and Jord?s (2005) method for estimating impulse responses, we find no evidence that multipliers are greater during periods of high unemployment in the U.S. In every case, the estimated multipliers are below unity. We do find some ...
Working Papers , Paper 2013-004

Journal Article
A consumer's guide to regional economic multipliers
Mandelbaum, Thomas B.; Coughlin, Cletus C. (1991-01)
Review , Issue Jan , Pages 19-32