Is fiscal policy more effective in uncertain times orudduring recessions?

摘要

This paper estimates the impact of government spending shocks on economicudactivity during periods of high and low uncertainty and during periods of boomudand recession. We find that government spending shocks have larger impacts onudoutput in booms than in recessions and larger impacts during tranquil times thanudduring uncertain times. The results suggest that confidence plays an importantudrole in explaining this differential impact.