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-term multiplier of one, which reduces over the medium term. Thus, the temporary VAT reduction is an effective instrument in the short …
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shock is highly expansionary in the long run, with the relevant fiscal multiplier substantially exceeding 1, but this effect … materialization of the shock yielding a fiscal multiplier above 1 in the long run. …
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What do we know about the output effects of fiscal policy in low income countries (LICs)? There are very few empirical studies on the subject. This paper fills this gap by estimating the output effects of government spending shocks in LICs. Our analysis-based on the local projection method-finds...
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