New Keynesian versus old Keynesian government spending multipliers

Renewed interest in fiscal policy has increased the use of quantitative models to evaluate policy. Because of modeling uncertainty, it is essential that policy evaluations be robust to alternative assumptions. We find that models currently being used in practice to evaluate fiscal policy stimulus proposals are not robust. Government spending multipliers in an alternative empirically-estimated and widely-cited new Keynesian model are much smaller than in these old Keynesian models; the estimated stimulus is extremely small with GDP and employment effects only one-sixth as large

New Keynesian versus old Keynesian government spending multipliers

Renewed interest in fiscal policy has increased the use of quantitative models to evaluate policy. Because of modelling uncertainty, it is essential that policy evaluations be robust to alternative assumptions. We find that models currently being used in practice to evaluate fiscal policy stimulus proposals are not robust. Government spending multipliers in an alternative empirically-estimated and widely-cited new Keynesian model are much smaller than in these old Keynesian models; the estimated stimulus is extremely small with GDP and employment effects only one-sixth as large. JEL Classification: C52, E62fiscal multiplier, Fiscal Stimulus, government spending, Macroeconomic Modeling, New Keynesian Model

New Keynesian versus old Keynesian government spending multipliers

Renewed interest in fiscal policy has increased the use of quantitative models to evaluate policy. Because of modelling uncertainty, it is essential that policy evaluations be robust to alternative assumptions. We find that models currently being used in practice to evaluate fiscal policy stimulus proposals are not robust. Government spending multipliers in an alternative empirically-estimated and widely-cited new Keynesian model are much smaller than in these old Keynesian models; the estimated stimulus is extremely small with GDP and employment effects only one-sixth as large

Anisotropic Susceptibility of La_2-xSr_xCoO_4 related to the Spin States of Cobalt

We present a study of the magnetic susceptibility of La_2-xSr_xCoO_4 single crystals in a doping range 0.3<=x<=0.8. Our data shows a pronounced magnetic anisotropy for all compounds. This anisotropy is in agreement with a low-spin ground state (S=0) of Co^3+ for x>=0.4 and a high-spin ground state (S=3/2) of Co^2+. We compare our data with a crystal-field model calculation assuming local moments and find a good description of the magnetic behavior for x>=0.5. This includes the pronounced kinks observed in the inverse magnetic susceptibility, which result from the anisotropy and low-energy excited states of Co^2+ and are not related to magnetic ordering or temperature-dependent spin-state transitions

Lattice Distortion and Magnetic Ground State of YTiO3_3 and LaTiO3_3

Effects of lattice distortion on the magnetic ground state of YTiO$_3$ and LaiO$_3$ are investigated on the basis accurate tight-binding parametrization of the $t_{2g}$ electronic structure extracted from the local-density approximation. The complexity of these compounds is related with the fact that the $t_{2g}$-level splitting, caused by lattice distortions, is comparable with the energies of superexchange and spin-orbit interactions. Therefore, all these interactions are equally important and should be treated on an equal footing. The Hartree-Fock approximation fails to provide a coherent description simultaneously for YTiO$_3$ and LaTiO$_3$, and it is essential to go beyond.Comment: 4 pages, 3 figures (good quality figures are available via e-mail

Phonons and Magnetic Excitations in Mott-Insulator LaTiO3_3

The polarized Raman spectra of stoichiometric LaTiO$_3$ (T$_N = 150$ K) were measured between 6 and 300 K. In contrast to earlier report on half-metallic LaTiO$_{3.02}$, neither strong background scattering, nor Fano shape of the Raman lines was observed. The high frequency phonon line at 655 cm$^{-1}$ exhibits anomalous softening below T$_N$: a signature for structural rearrangement. The assignment of the Raman lines was done by comparison to the calculations of lattice dynamics and the nature of structural changes upon magnetic ordering are discussed. The broad Raman band, which appears in the antiferromagnetic phase, is assigned to two-magnon scattering. The estimated superexchange constant $J = 15.4\pm0.5$ meV is in excellent agreement with the result of neutron scattering studies.Comment: 4 pages, 5 figure

Determination of the orbital moment and crystal field splitting in LaTiO3_{3}

Utilizing a sum-rule in a spin-resolved photoelectron spectroscopic experiment with circularly polarized light, we show that the orbital moment in LaTiO$_3$ is strongly reduced both below and above the N\'{e}el temperature. Using Ti $L_{2,3}$ x-ray absorption spectroscopy as a local probe, we found that the crystal field splitting in the $t_{2g}$ subshell is about 0.12-0.30 eV. This large splitting does not facilitate the formation of an orbital liquid

Crystal and magnetic structure of LaTiO3 : evidence for non-degenerate t2gt_{2g}-orbitals

The crystal and magnetic structure of LaTiO3 ~ has been studied by x-ray and neutron diffraction techniques using nearly stoichiometric samples. We find a strong structural anomaly near the antiferromagnetic ordering, T$_N$=146 K. In addition, the octahedra in LaTiO3 exhibit an intrinsic distortion which implies a splitting of the t2g-levels. Our results indicate that LaTiO3 should be considered as a Jahn-Teller system where the structural distortion and the resulting level splitting are enhanced by the magnetic ordering.Comment: 4 pages 5 figure

Thermodynamics of a one-dimensional S=1/2 spin-orbital model

The thermodynamic properties of a one-dimensional model describing spin dynamics in the presence of a twofold orbital degeneracy are studied numerically using the transfer-matrix renormalization group (TMRG). The model contains an integrable SU(4)-symmetric point and a gapless phase which is SU(4) invariant up to a rescaling of the velocities for spin and orbital degrees of freedom which allows detailed comparison of the numerical results with conformal field theory. We pay special attention to the correlation lengths which show an intriguing evolution with temperature. We find that the model shows an intrinsic tendency towards dimerization at finite temperature even if the ground state is not dimerized.Comment: 9 pages, 12 figure