Fiscal Policy

  1. The Multiplier Effect
    1. Government Spending Multiplier
      1. Definition and Concept
        1. Marginal Propensity to Consume
          1. Formula and Calculation
            1. Determinants of Multiplier Size
              1. MPC Value
                1. Tax Rates
                  1. Import Propensity
                  2. Limitations of the Multiplier
                    1. Crowding Out
                      1. Ricardian Equivalence
                        1. Supply Constraints
                      2. Tax Multiplier
                        1. Definition and Concept
                          1. Marginal Propensity to Save
                            1. Formula and Calculation
                              1. Comparison with Spending Multiplier
                                1. Types of Tax Multipliers
                                2. The Balanced Budget Multiplier
                                  1. Definition and Calculation
                                    1. Theoretical Foundation
                                      1. Implications for Policy
                                        1. Empirical Evidence
                                        2. Empirical Evidence on Multipliers
                                          1. Historical Estimates
                                            1. Cross-Country Comparisons
                                              1. State-Dependent Multipliers
                                                1. Methodological Issues

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                                              4. Fiscal Policy in the Macroeconomic Framework

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                                              6. Automatic Stabilizers vs. Discretionary Fiscal Policy