Author:
Deleidi Matteo,Iafrate Francesca,Levrero Enrico Sergio
Abstract
Abstract
This paper aims to estimate the government investment fiscal multipliers in select European countries for the period 1970–2016. To do this, we combine Structural Vector Autoregression (SVAR) modeling with the Local Projections (LP) approach. We estimate models by also controlling for fiscal foresight, excluding the postcrisis period and distinguishing between Northern and Southern countries. Our findings suggest that an increase in government investment generates a “Keynesian effect” by engendering positive and permanent effects on the GDP level, even when government expenditure expectations are considered. Fiscal multipliers are close to 1 on impact and increase in the years after the implementation of a discretionary fiscal policy.
Publisher
Cambridge University Press (CUP)
Subject
Economics and Econometrics
Reference84 articles.
1. Government spending and heterogeneous consumption dynamics
2. Quantitative effects of fiscal foresight;Leeper;American Economic Journal: Economic Policy,2012
3. Pappa, E. (2009) The effects of fiscal expansions: An international comparison. Barcelona Graduate School of Economics Working Papers No.409.
4. Macroeconomic Shocks and Their Propagation
5. A Simple Method to Compute Fiscal Multipliers
Cited by
9 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献