This chapter reviews and synthesizes our current understanding of the shocks that drive
economic fluctuations. The chapter begins with an illustration of the problem of identifying …

Abstract Since Edward Leamer's memorable 1983 paper,“Let's Take the Con out of
Econometrics,” empirical microeconomics has experienced a credibility revolution. While …

This paper takes stock of what we have learned from the “Renaissance” in fiscal research in
the ten years since the financial crisis. I first discuss the new innovations in methodology and …

This paper studies the economic impacts of carbon pricing. Exploiting institutional features of
the European carbon market and high-frequency data, I document that a tighter carbon …

The term “austerity” indicates a policy of sizeable reduction of govern-ment deficits and
stabilization of government debt achieved by means of spending cuts or tax increases, or …

This paper discusses empirical approaches macroeconomists use to answer questions like:
What does monetary policy do? How large are the effects of fiscal stimulus? What caused …

A geographic cross-sectional fiscal spending multiplier measures the effect of an increase in
spending in one region of a monetary union. Empirical studies of such multipliers have …

We investigate whether US government spending multipliers are higher during periods of
economic slack or when interest rates are near the zero lower bound. Using new quarterly …

We conduct a simulation study of Local Projection (LP) and Vector Autoregression (VAR)
estimators of structural impulse responses across thousands of data generating processes …

The last 50 years has seen a dramatic decline in taxes on the rich across the advanced
democracies. There is still fervent debate in both political and academic circles, however …