The aim of this paper is to estimate government consumption multiplier and to examine the effect of various … characteristics of countries on the size of fiscal multiplier. We apply a panel VAR model following Ilzetzki et al. (2013) for a … multiplier is larger than unity. Second, the size of fiscal multiplier is larger in the cases of lower public indebtedness, for …

spending by $0.29. We translate the regional consumption responses to an aggregate fiscal multiplier using a multi-region, New … multiplier, a result that distinguishes our incomplete markets model from models with complete markets. The aggregate consumption … multiplier is 0.64, which implies an output multiplier higher than one. The aggregate consumption multiplier is larger than the …

multiplier far below one. However, the stimulus ́multiplier strongly depends on the assumed monetary policy response. Based on …

inflation from its trend, implying that the more demand-driven a recession, the higher the multiplier. Median multipliers range …