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This paper estimates the macroeconomic effects of government spending shocks in New Zealand. Using a structural vector autoregression (SVAR) model, I find small output multipliers for government consumption but large multipliers for government investment. Importantly, the real exchange rate...
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caused by COVID-19. This study aims to assess the multiplier effects that budget revision has on the economy for the case of … appears that the budget restructuring that takes place during the year does not take into account the multiplier effect in the …
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restriction reduces the effectiveness of a temporary VAT reduction, we find a short-term multiplier of 1.8. However, the … cumulative multiplier reduces to below 1 over the medium term due to a shift in durable goods consumption toward 2020. Thus, the …
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