First, the concept of public expenditure multiplier is redefined to allow for import intensity of exports, and its value is estimated for Poland and the Czech Republic in 2008-2009. Next, on the basis of effective demand model of economic dynamics, there follows a comparative analysis of GDP...

The paper aims to answer two main questions. Is it possible to calculate and analyze fiscal, investment and export multipliers in the short term? The classic approach is mainly based on the input–output balances, which are most often published every 5 years. Is it possible to determine the...

Mora and Acevedo (2019) report that the government spending multipliers in Latin American countries are notably higher than what is typically reported for developed economies. Latin American countries have been inclined towards using procyclical fiscal policies. Those policies have been...

We provide a systematic analysis of fiscal consolidation in a dynamic general equilibrium model with a detailed government sector and a share of credit-constrained households. We simulate permanent cuts in government consumption, government investment, and transfer payments as well as permanent...

This paper shows that the fiscal multiplier for purchases of durable and investment goods is very small - much smaller than the multiplier for nondurable goods. Standard models predict small durables multipliers because private sector purchases of durable goods are highly intertemporally...

This paper analyses the short-run effects of fiscal consolidation measures on economic activity in the euro area during the euro crisis. It presents new econometric estimates on the link between cumulative GDP growth and fiscal austerity measures during 2011-2013. The main empirical finding is...

In response to the record-breaking COVID19 recession, many governments have adopted unprecedented fiscal stimuli. While countercyclical fiscal policy is effective in fighting conventional recessions, little is known about the effectiveness of fiscal policy in the current environment with...

In this paper we derive analytic implicit form conditions for the qualitative analysis of government spending multipliers and the optimal level of government spending in presence of non-separability between private and public components of aggregate demand. Using the simplest neo-classical...

It is shown empirically that, for the US economy, fiscal stimulus has increased total consumption, but has depressed economic growth. Therefore, decades of fiscal stimulus has been a continual depressant on US economic growth and moved the economy closer to the Keynesian singularity defined as...