Dupaigne, MartialFève, Patrick2016-09-152016-09-152016-09-15http://hdl.handle.net/10230/27299This paper inspects the mechanism shaping government spending multipliers in various smallscale DSGE setups with endogenous labor supply and capital accumulation. We analytically characterize the short-run investment multiplier, which in equilibrium can be either positive or negative. The investment multiplier increases with the persistence of the exogenous government spending process. The response of investment to government spending shocks strongly affects short-run multipliers on output and consumption.application/pdfengThis is an Open Access article distributed under the terms of the Creative Commons Attribution License Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution and reproduction in any medium provided that the original work is properlyattributed.info:eu-repo/semantics/workingPaperGovernment spending multipliersDSGE modelsCapital accumulationLabor supplyMarket imperfectionsinfo:eu-repo/semantics/openAccess