between multiplier size and the import share. Employing an interacted panel VAR model for EU countries, we estimate the effect …

inflation from its trend, implying that the more demand-driven a recession, the higher the multiplier. Median multipliers range …

multiplier is sensitive to the assumption of orthogonality between total factor productivity (non-fiscal proxy) and tax shocks …. If this correlation is assumed to be zero, the tax multiplier is found to be around one. If such correlation is non …-zero, as supported by our empirical evidence, we find a tax multiplier three times as large. Second, we find the spending …