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LEARNING AND THE SIZE OF THE GOVERNMENT SPENDING MULTIPLIER – ERRATUM
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- Journal:
- Macroeconomic Dynamics / Volume 24 / Issue 6 / September 2020
- Published online by Cambridge University Press:
- 14 November 2018, p. 1595
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- Article
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Table 4 of this article was incorrectly published with subheadings in Table 4 missing. The publisher regrets this error and the correct version of Table 4 is presented here.
Table 4. Present-value multipliers for different specifications of fiscal policy in the new Keynesian model with rational expectations and with adaptive learning
Rational expectations Adaptive learning Impact 1 year 4 years 6 years Impact 1 year 4 years 6 years Strategy 1: Lump-sum financing (baseline model) 
$\frac{{PV\left( {\Delta Y} \right)}}{{PV\left( {\Delta G} \right)}}\$0.51 0.50 0.46 0.43 1.01 1.00 0.99 0.97 
$\frac{{PV\left( {\Delta C} \right)}}{{PV\left( {\Delta G} \right)}}\$−0.29 −0.30 −0.34 −0.37 0.09 0.09 0.07 0.06 
$\frac{{PV\left( {\Delta I} \right)}}{{PV\left( {\Delta G} \right)}}\$−0.20 −0.20 −0.20 −0.20 −0.08 −0.08 −0.09 −0.09 Strategy 2: Capital tax financing $\frac{{PV\left( {\Delta Y} \right)}}{{PV\left( {\Delta G} \right)}}\$0.32 0.29 0.12 0.02 0.43 0.38 0.20 0.08 $\frac{{PV\left( {\Delta C} \right)}}{{PV\left( {\Delta G} \right)}}\$−0.23 −0.26 −0.40 −0.48 −0.08 −0.12 −0.27 −0.37 $\frac{{PV\left( {\Delta I} \right)}}{{PV\left( {\Delta G} \right)}}\$−0.68 −0.69 −0.70 −0.71 −0.80 −0.80 −0.81 −0.82 Strategy 3: Labor tax financing $\frac{{PV\left( {\Delta Y} \right)}}{{PV\left( {\Delta G} \right)}}\$−0.64 −0.68 −0.85 −0.95 0.48 0.47 0.43 0.40 $\frac{{PV\left( {\Delta C} \right)}}{{PV\left( {\Delta G} \right)}}\$−1.07 −1.10 −1.24 −1.33 −0.37 −0.38 −0.41 −0.43 $\frac{{PV\left( {\Delta I} \right)}}{{PV\left( {\Delta G} \right)}}\$−0.71 −0.71 −0.73 −0.74 −0.17 −0.18 −0.18 −0.18 Note: See main text for a description of the different financing strategies.
