@techreport{NBERw16169, title = "A Model-Based Evaluation of the
Debate on the Size of the Tax Multiplier", author = "Ryan
Chahrour and Stephanie Schmitt-Grohé and Martín Uribe",
institution = "National Bureau of Economic Research", type =
"Working Paper", series = "Working Paper Series", number =
"16169", year = "2010", month = "July", doi = {10.3386/w16169},
URL = "http://www.nber.org/papers/w16169", abstract = {The SVAR
and narrative approaches to estimating tax multipliers deliver
significantly different results. The former yields multipliers
of about 1 percent, whereas the latter produces much larger
multipliers of about 3 percent. The SVAR and narrative
approaches differ along two important dimensions: the
identification scheme and the reduced-form transmission
mechanism. This paper uses a DSGE-model approach to evaluate the
hypothesis that the different tax multipliers stemming from the
SVAR and narrative approaches are due to differences in the
assumed reduced-form transmission mechanisms. The main fi