| Description |
1 online resource (47 pages) : illustrations (some color) |
| Series |
IMF working paper ; WP/13/141 |
|
IMF working paper ; WP/13/141
|
| Contents |
Cover; Contents; I. Introduction; II. Empirics; III. Model; Figures; Figure 1. Estimated Impulse Responses from the SVAR over Sample 1954q1-2007q4 to a Shock to Government Consumption Expenditure of Size 1% of Real Output; A. Households; B. Government; C. Entrepreneurs; D. Final Good Firms; E. Banking Sector; F. Equilibrium; G. Functional Forms; H. Parameter Choice; IV. Results; Tables; Table 1. Parameter Choice; Figure 2. Impulse Responses to a Shock to Government Consumption Expenditures of Size 1% of Real Output; A. Financial Accelerator Effect; V. Effects of Some Model Features |
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Figure 3. The Financial Accelerator EffectFigure 4. Effects of Some Model Features; VI. Conclusion; References; Appendix; A. Robustness of SVAR results; 1. Substitution of the Average Marginal Tax Rate with Net Taxes; 2. Introduction of the Inflation Rate and the Federal Funds Rate; Figure A.1 Various Robustness Checks for the SVAR Results; 3. Purified (unanticipated) Innovations in Government Spending Using SPF/ Greenbook Forecasts; 4. SPF/Greenbook Forecast Errors for the Growth Rate of Government Spending as Unanticipated Shocks; B. Sensitivity Exercises for the DSGE Model |
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1. Degree of Deep Habits in Consumption and of Lending RelationshipsFigure B.1 Sensitivity of Impact Responses to the Parameter of Deep Habits in Consumption and of Lending Relationships; 2. Persistence of Deep Habits in Consumption and of Lending Relationships; Figure B.2 Sensitivity of Impulse Responses to the Persistence in Deep Habits in Consumption; Figure B.3 Sensitivity of Impulse Responses to the Persistence in Lending Relationships; 3. Quantitative Implications of a "Useless" Government Consumption; Figure B.4 Sensitivity to Government Consumption in the Utility Function |
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C.A NK Extension of the Model1. Introducing Sticky Prices; 2. Results; Figure C.1 A government Spending Expansion (1% of output): Flexible Versus Sticky Price Version; D. Symmetric Equilibrium; E. Steady State |
| Summary |
This paper studies how fiscal policy affects loan market conditions in the US. First, it conducts a Structural Vector-Autoregression analysis showing that the bank spread responds negatively to an expansionary government spending shock, while lending increases. Second, it illustrates that these results are mimicked by a Dynamic Stochastic General Equilibrium model where the bank spread is endogenized via the inclusion of a banking sector exploiting lending relationships. Third, it shows that lending relationships represent a friction that generates a financial accelerator effect in the transmission of the fiscal shock |
| Notes |
"June 2013." |
| Bibliography |
Includes bibliographical references (pages 25-28) |
| Notes |
Online resource; title from PDF caption title (IMF, viewed September 12, 2013) |
| Subject |
Fiscal policy -- United States
|
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Loans -- United States
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Fiscal policy
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Loans
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United States
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| Form |
Electronic book
|
| Author |
Villa, Stefania, author
|
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International Monetary Fund, issuing body
|
| ISBN |
1299678394 |
|
9781299678392 |
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9781484301012 |
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1484301013 |
|
9781484380277 |
|
1484380274 |
|
9781484380802 |
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1484380800 |
|
