provinces, instruments for provincial credit and government expenditure growth. We find a fiscal multiplier of 0.75 in 2001 … multiplier of 0.2 in 2001-2008 declined to close to zero in 2010-2015, consistent with credit saturation and credit misallocation …

expenditure. We estimate a fiscal multiplier of 0.8 and a credit multiplier of 0.2 in 2001-2015. The multipliers have changed over … time. The fiscal multiplier has increased from 0.75 in 2001-2008 to 1.4 in 2010-2015. The credit multiplier has declined …

, this letter points out a downward bias in the estimation of Chinese government spending multiplier using the classical lag … significantly reacts to output shock counter-cyclically within a quarter, with the resulting government spending multiplier being 0 …