Estimating Non-Keynesian Effects for Japan

What is it about?

Is a fiscal stimulus effective? This classical question has received significant research attention since the collapse of the global financial services firm Lehman Brothers. Although most studies agree on the existence of Keynesian multiplier effects, several studies also demonstrate the existence of non-Keynesian effects. What explains this lack of consensus in the literature? In this paper, we aim to bridge the two views by estimating a near-vector autoregressive (near-VAR) system.

Featured Image

Why is it important?

Although most studies agree on the existence of Keynesian multiplier effects, several studies also demonstrate the existence of non-Keynesian effects. What explains this lack of consensus in the literature? To bridge the two views is needed for the discussion on the multiplier effects.

Perspectives