Twin deficits: squaring theory, evidence and common sense

By Giancarlo Corsetti, Gernot J. Müller. 2006

333 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/0f0d9621b1182080f3eadd94d8652bb09fc6f7f7

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In Economics and Econometrics

Citations in the corpus

Fiscal Stimulus with Spending Reversals (2009, unknown): “Comparable results from the previous literature are inconclusive: while Kim and Roubini (2008) document an improving current account in response to positive spending shocks, Corsetti and Müller (2006) and Monacelli and Perotti (2010) find more mixed evidence.”
How Do Fiscal and Technology Shocks Affect Real Exchange Rates? New Evidence for the United States (2008, background): “The evidence discussed in Corsetti and Müller (2006) suggests that the import content in government spending is generally less than half the import content in private spending.”
Cross-Border Spillovers from Fiscal Stimulus (2009, unknown): “…Quarters 3.3 Calvo Wages θ w 0.7 Wage Durations Quarters 3.3 Government Spending Persistence ψ gg 0.9 VAR Studies Home Bias Government Spending ω G 0.94 Corsetti and Müller (2006) Debt Stabilization Taxes ψ td 0.02 Non-Explosiveness of Public Debt Parameter Baseline Sensitivity Debt…”
Fiscal Policy and the Current Account (2011, background): “Fiscal policy emerges as a natural protagonist in these studies due to its potentially significant impact on the size and composition of aggregate demand both of which are directly relevant for exchange rate movements (Corsetti and Muller, 2006).”
The economic effects of fiscal policy: The case of Spain (2008, background): “Interestingly, Corsetti and Müller (2006) identify fiscal shocks for the US, Canada, the United Kingdom and Australia so as to analyse the external impact of shocks to government spending and public deficits.”
What Determines Government Spending Multipliers? (2012, unknown): “10 Recent contributions include Perotti (2004, 2007) and Galí et al. (2007), which focus on domestic-economy variables, and Canzoneri, Cumby, and Diba (2003), Kim and Roubini (2008) and Corsetti and Müller (2006), which address the international dimension.”
Fiscal Policy, the Real Exchange Rate and Traded Goods (2010, unknown): “7 This specification of the reduced form is similar to that of Corsetti and Müller (2006), with a few differences: their list of variables includes both government spending and the budget deficit as a share of GDP but not net taxes; they include the inflation rate; most importantly, they have the te”
Fiscal Policy, the Trade Balance, and the Real Exchange Rate: Implications for International Risk Sharing (2007, background): “Literature Froot-Rogo¤ (1991) VAR: Kim and Roubini (2004), Corsetti and Müller (2006) Results - Countries: US, UK, Australia, Canada - Positive G shock !”
A Forensic Analysis of Global Imbalances (2011, background): “5 Smaller estimates of the fiscal impact are reported by Bussiere (2005), Corsetti and Muller (2006), and Gruber and Kamin (2007).”
Twin Deficit or Twin Divergence? Fiscal Policy, Current Account, and Real Exchange Rate in the US (2008, background): “3 In a recent study, Corsetti and Müller (2006) showed that a fiscal expansion can lead to an improvement of current account if an economy is sufficiently closed and if fiscal shocks are not too persistent. 4 Some very recent studies such as Corsetti and Müller (2006) and Monacelli and Perotti (2006”
Government spending shocks in open economy VARs (2014, background): “…spending lead, in advanced economies with flexible exchange rates, to a depreciation of the real domestic currency (see Kim and Roubini, 2008, Corsetti and Muller, 2006, Monacelli and Perotti, 2007, Ravn, SchmittGrohe and Uribe, 2007, and Enders, Muller and Scholl, 2011).12 The result stands…”
The Effects of Discretionary Fiscal Policy on Macroeconomic Aggregates: A Reappraisal (2011, unknown): “Corsetti and Müller (2006) argue that a negative shock to the budget deficit worsens the current account only in rather open economies.”