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Decomposing local fiscal multipliers : evidence from Japan

Kameda, Taisuke; Namba, Ryoichi; Tsuruga, Takayuki - 2019 - This draft: October 2019

accounts. We estimate the local fiscal multiplier on output to be 1.7 at the regional level. The regional fiscal multiplier … and small in size. We decompose the regional fiscal multiplier on output into multipliers on expenditure components. The … regional fiscal multiplier on absorption exceeds 2.0 because of the crowding-in effect on consumption and investment. Moreover …

Persistent link: https://www.econbiz.de/10012109875

Determinants of fiscal multipliers revisited

Horváth, Roman; Kaszab, Lorant; Marsal, Ales; … - 2019

We generalize a simple New Keynesian model and show that a flattening of the Phillips curve reduces the size of fiscal multipliers at the zero lower bound (ZLB) on the nominal interest rate. The factors behind the flatting are consistent with micro- and macroeconomic empirical evidence: it is a...

Persistent link: https://www.econbiz.de/10012111527

Fiscal policy and fiscal fragility : empirical evidence from the OECD

Shagi, Makram el-; Schweinitz, Gregor von - 2019

In this paper, we use local projections to investigate the impact of consolidation shocks on GDP growth, conditional on the fragility of government finances. Based on a database of fiscal plans in OECD countries, we show that spending shocks are less detrimental than tax-based consolidation. In...

Persistent link: https://www.econbiz.de/10012012854

Revenue- versus spending-based consolidation plans : the role of follow-up

Beetsma, Roel; Furtuna, Oana; Giuliodori, Massimo - 2018

The literature on fiscal multipliers finds that spending-based fiscal consolidations tend to have more benign macro-economic consequences than revenue-based consolidations. By directly comparing ex-post data with consolidation plans, we present evidence of a systematically weaker follow-up of...

Persistent link: https://www.econbiz.de/10011904377

The heterogeneous effects of government spending : it's all about taxes

Ferriere, Axelle; Navarro, Gaston - 2018

This paper investigates how government spending multipliers depend on the distribution of taxes across households. We exploit historical variations in the financing of spending in the U.S. since 1913 to show that multipliers are positive only when financed with more progressive taxes, and zero...

Persistent link: https://www.econbiz.de/10011917433

Government spending and the income-expenditure model : the multiplier, spending composition, and job guarantee programs

Palley, Thomas I. - 2018

. That generates a novel Kaleckian balanced budget multiplier driven by changed composition of government spending. The paper …

Persistent link: https://www.econbiz.de/10011927012

The effectiveness of fiscal policy within business cycle : Ricardians vs. non-Ricardians approach

Krajewski, Piotr; Szymańska, Agata - In: Baltic journal of economics 19 (2019) 2, pp. 195-215

This study aims to measure the impact of the share of non-Ricardian households on fiscal multipliers. We show that the share of non-Ricardian households in Hungary increased significantly after crisis began and explain why the plausible reason for this increase is the higher level of liquidity...

Persistent link: https://www.econbiz.de/10012123344

Fiscal multipliers in South Africa : the importance of financial sector dynamics

Makrelov, Konstantin; Arndt, Channing; Davies, Rob; … - 2018

can increase the multiplier further by reducing the domestic savings constraint. The size of the fiscal multipliers is …

Persistent link: https://www.econbiz.de/10011776217

Debt-Dependent Effects of Fiscal Expansions

Bi, Huixin - 2016

Economists often postulate that ﬁscal expansions are less stimulative when government debt is high than when it is low. Empirical evidence, however, is ambiguous. Using a nonlinear neoclassical growth model, we show that the difference in government spending effects between high- and low-debt...

Persistent link: https://www.econbiz.de/10012995877

Government Spending Multipliers in Resource-Rich Developing Countries

Nganou, Jean-Pascal N. - 2017

This paper estimates government spending multiplier for natural resource-rich low-income countries (LICs). Our … estimates suggest an absence of natural resource curse in government spending multiplier. In the short run, the government … spending multiplier is around 0.7 for natural resource-rich LICs and 0.43 for all LICs. The government spending has a permanent …

Persistent link: https://www.econbiz.de/10012967304