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We study fiscal spending multipliers of the UK economy using a time-varying parameter factor augmented vector autoregressive (TVP-FAVAR) model. We show that government spending multipliers vary over time and that most of the variation is cyclical: multipliers are typically above one in...
Persistent link: https://www.econbiz.de/10012932638
This paper is about fiscal consolidation measures (i.e. tax hikes and government spending cuts motivated by a desire to reduce the fiscal deficit and public debt) in euro area (EA) countries. The focus is on analysing the growth effects of fiscal adjustments as well as their implications for...
Persistent link: https://www.econbiz.de/10015076372
This study examines whether differences in public sector efficiency are associated with diverging effects of public investment on growth. At first stage, we estimate public investment multipliers for each country of the European Union (EU). Their size varies considerably across countries. Then...
Persistent link: https://www.econbiz.de/10012996027
In a standard linear structural VAR framework we analyse the size and sign of fiscal multipliers in the euro area, using a newly available quarterly dataset of fiscal variables for the period 1981-2007. From a policy perspective, the analysis of fiscal multipliers in “average times” provides...
Persistent link: https://www.econbiz.de/10013112389
-called r-g. Whether the fiscal shock occurs when r-g is positive or negativematters for the size of the multiplier. Median … multiplier is inversely correlated with r-g. The calculationsare based on the estimates of a factor-augmented interacted panel …
Persistent link: https://www.econbiz.de/10013243042
The impact of fiscal policy on economic growth is investigated within a panel of euro area member states over the period 2004-2011. We mainly consider fiscal impulses identified by (a) changes in the structural primary balance, complemented by evidence from (b) the IMF narrative shocks developed...
Persistent link: https://www.econbiz.de/10014079017
Persistent link: https://www.econbiz.de/10009675139
Persistent link: https://www.econbiz.de/10009316919
Fiscal spending multiplier calculations have been revived in the aftermath of the global financial crisis. Much of the … multiplier for EU members. Multipliers for specific spending categories are comparably high, ranging between 1.4 and 1.8 for many … react in an expansionary manner. -- Fiscal spending multiplier calculation ; Input-Output calculus ; incomeexpenditure model …
Persistent link: https://www.econbiz.de/10009126063
Persistent link: https://www.econbiz.de/10012156354