The general equilibrium effects of fiscal policy

2110consumptionoutput0−1−1investment−2−20 0.2 0.4 0.6 0.8 1γ−31 2 3 4 5 6 7 8 9 10σ l10.50.50−0.5−1−1.50 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9h0−0.5−10 0.2 0.4 0.6 0.8 1ρ lg0.5100.50−0.5−0.5−10 0.2 0.4 0.6 0.8 1η τw−11 1.2 1.4 1.6 1.8 2ρ πFig. 13: Robustness - First year average responses to a government employment shockof output, consumption and investment for parameters ranges61