The aim of this paper is twofold. First, for West Germany, France, Italy and US, we econometrically select within a ….1 percent quarterly on average at most to a 1 percentage change in the expenditure or revenue ratio). In Italy, the US and …

The aim of this paper is twofold. First, for West Germany, France, Italy and US, we econometrically select within a ….1 percent quarterly on average at most to a 1 percentage change in the expenditure or revenue ratio). In Italy, the US and …

autoregression (VAR) approach. Identification of the tax shock follows the narrative approach recently proposed by Romer and Romer …

.K., Germany and Italy, for the period 1980:4-2009:4, encompassing macro, fiscal and financial variables. The results show that (i … economic growth to a fiscal shock are mostly positive in both financial stress regimes; (iii) financial stress has a negative … shock is mainly associated with different behaviour across regimes; (v) the size of the fiscal multipliers is higher than …

spending shock and a negative and a positive government revenue shock. These eight different types of unanticipated fiscal … augmented with four lags of each fiscal shock …