Macroeconomics research seminar: Dr Omar Rachedi on demographics and fiscal multipliers

Macroeconomics research seminar: Dr Omar Rachedi on demographics and fiscal multipliers

Issued: Mon, 05 Mar 2018 09:55:00 GMT

Date: Thursday 8 March 2018
Time: 3pm - 4:30pm
Venue: Main Building Lecture Theatre 206
Category: Academic events
Audience: Academic staff and doctoral students
Admission: Free
Registration: N/A

Dr Omar Rachedi of the Bank of Spain will present his research entitled 'The Young, the Old, and the Government: Demographics and Fiscal Multipliers' at Adam Smith Business School on Thursday 8 March 2018.

Abstract:
We document that fiscal multipliers depend on the age structure of the population. Using the variation in government military spending and birth rates across U.S. states, we show that local fiscal multipliers increase with the share of young people in total population. We rationalize this fact with a parsimonious life-cycle open-economy New Keynesian model with credit market imperfections and age-specific Frisch elasticities. The model explains 61% of the relationship between local fiscal multipliers and demographics. We use the model to study the implications of population aging, and find that nowadays U.S. national fiscal multipliers are 36% lower than in 1980.

Biography:
Dr Omar Rachedi is an economist at the Banco de España. His research covers topics in the fields of macro-finance. Omar received a PhD from the Universidad Carlos III de Madrid in 2015.


Please email Andrew Bruce at business-school-research@glasgow.ac.uk for further information on this event.

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