000			01152nam a22001337a 4500
999			_c524224 _d524224
008			231106b ||||| |||| 00| 0 eng d
100			_aWolf, Christian K. _941497
245			_aThe missing intercept: a demand equivalence approach
260			_aThe American Economic Review
300			_a113(8), Aug, 2023: p.2232-2269
520			_aI give conditions under which changes in private spending are accommodated in general equilibrium exactly like changes in aggregate fiscal expenditure. Under such demand equivalence, researchers can use time series evidence on fiscal multipliers to recover the general equilibrium "missing intercept" of shocks to private spending identified in the cross section. Through the lens of this theory, time series estimates of a fiscal multiplier around one suggest a missing intercept close to zero—an observation that I illustrate with an application to the 2008 tax rebates. I also discuss the robustness of this aggregation approach to plausible violations of demand equivalence.- Reproduced https://www.aeaweb.org/articles?id=10.1257/aer.20211751
773			_aThe American Economic Review
942			_cAR