multiplier is sensitive to the assumption of orthogonality between total factor productivity (non-fiscal proxy) and tax shocks …. If this correlation is assumed to be zero, the tax multiplier is found to be around one. If such correlation is nonzero …, as supported by our empirical evidence, we find a tax multiplier three times as large. Second, we find the spending …

multiplier is sensitive to the assumption of orthogonality between total factor productivity (non-fiscal proxy) and tax shocks …. If this correlation is assumed to be zero, the tax multiplier is found to be around one. If such correlation is nonzero …, as supported by our empirical evidence, we find a tax multiplier three times as large. Second, we find the spending …

multiplier ranges from -0.83 to -0.27 for taxes, and from 0.02 to 0.98 for government spending respectively. Overall, these …

based on an application of an "imperfect" balanced budget multiplier, proposing a combination of discretionary increases in …

closely related to the harshness of fiscal austerity. Cumulative multiplier estimates are found to vary in a range from 1.4 to … 2.1, depending on the data source used to identify the intensity of fiscal consolidation. Given these multiplier values …

larger multiplier when it issues short term debt. We find that the latter effect dominates and that the optimal policy for …