Liquidity constraints and fiscal multipliers
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/142282 |
Resumo: | Although recent studies identified the percentage of constrained agents as the crucial force driving many fiscal policy mechanisms, the values attained were purely the result of model calibrations. We make use of household-level data to estimate the fraction of hand-to-mouth households for several European countries. We calibrate an overlapping generations model with heterogeneous agents to match the net liquid wealth distribution and study the impact of credit constraints on the effectiveness of fiscal consolidation policies. Our findings suggest that the share of hand-to-mouth agents is no longer quantitatively relevant to explain the cross-country heterogeneity in fiscal multipliers when we calibrate the model to match empirically plausible estimates of that share. These results may be driven by the characteristics of the model we employ, which excludes the wealthy hand-to-mouth. |
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Liquidity constraints and fiscal multipliersFiscal consolidationFiscal multipliersLiquidity constraintsHand-to-mouthDomínio/Área Científica::Ciências Sociais::Economia e GestãoAlthough recent studies identified the percentage of constrained agents as the crucial force driving many fiscal policy mechanisms, the values attained were purely the result of model calibrations. We make use of household-level data to estimate the fraction of hand-to-mouth households for several European countries. We calibrate an overlapping generations model with heterogeneous agents to match the net liquid wealth distribution and study the impact of credit constraints on the effectiveness of fiscal consolidation policies. Our findings suggest that the share of hand-to-mouth agents is no longer quantitatively relevant to explain the cross-country heterogeneity in fiscal multipliers when we calibrate the model to match empirically plausible estimates of that share. These results may be driven by the characteristics of the model we employ, which excludes the wealthy hand-to-mouth.Brinca, PedroRUNSá, Diogo Larangeira de2022-07-22T09:21:57Z2022-01-142022-01-142022-01-14T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10362/142282TID:202999181enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T05:19:53Zoai:run.unl.pt:10362/142282Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:50:14.762748Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Liquidity constraints and fiscal multipliers |
title |
Liquidity constraints and fiscal multipliers |
spellingShingle |
Liquidity constraints and fiscal multipliers Sá, Diogo Larangeira de Fiscal consolidation Fiscal multipliers Liquidity constraints Hand-to-mouth Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Liquidity constraints and fiscal multipliers |
title_full |
Liquidity constraints and fiscal multipliers |
title_fullStr |
Liquidity constraints and fiscal multipliers |
title_full_unstemmed |
Liquidity constraints and fiscal multipliers |
title_sort |
Liquidity constraints and fiscal multipliers |
author |
Sá, Diogo Larangeira de |
author_facet |
Sá, Diogo Larangeira de |
author_role |
author |
dc.contributor.none.fl_str_mv |
Brinca, Pedro RUN |
dc.contributor.author.fl_str_mv |
Sá, Diogo Larangeira de |
dc.subject.por.fl_str_mv |
Fiscal consolidation Fiscal multipliers Liquidity constraints Hand-to-mouth Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Fiscal consolidation Fiscal multipliers Liquidity constraints Hand-to-mouth Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
Although recent studies identified the percentage of constrained agents as the crucial force driving many fiscal policy mechanisms, the values attained were purely the result of model calibrations. We make use of household-level data to estimate the fraction of hand-to-mouth households for several European countries. We calibrate an overlapping generations model with heterogeneous agents to match the net liquid wealth distribution and study the impact of credit constraints on the effectiveness of fiscal consolidation policies. Our findings suggest that the share of hand-to-mouth agents is no longer quantitatively relevant to explain the cross-country heterogeneity in fiscal multipliers when we calibrate the model to match empirically plausible estimates of that share. These results may be driven by the characteristics of the model we employ, which excludes the wealthy hand-to-mouth. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-07-22T09:21:57Z 2022-01-14 2022-01-14 2022-01-14T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/142282 TID:202999181 |
url |
http://hdl.handle.net/10362/142282 |
identifier_str_mv |
TID:202999181 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799138099358334976 |