-1.4), the welfare multiplier is 0.8. That is, a dollar spent by the government for investment raises domestic welfare by …

government spending and pushing up the output multiplier. The same external financing, however, tends to appreciate the real … exchange rate and as a result, traded output can respond quite negatively, reducing the overall output multiplier. Although … dampen the output multiplier. Since LICs often import substantial amounts of goods, public investment may not be as effective …

We estimate the subnational employment and GDP multiplier of Brazil's 2020 federal cash transfers to vulnerable … households. Using two-stage least squares regressions we estimate a formal employment multiplier and then apply an analytical … transformation to recover an implied GDP multiplier in the range of 0.5-1.5. The lower bound of this range lies below most estimates …

This paper investigates how macroeconomic uncertainty affects the fiscal multiplier of public investment. In theory …, uncertainty can reduce the multiplier if the private sector becomes more cautious and does not respond to the fiscal stimulus …. Conversely, it can increase the fiscal multiplier if public investment shocks improve private agents' expectations about future …