On the size of fiscal multipliers: A counterfactual analysis
| Autor(en): | Kuckuck, Jan Westermann, Frank |
Stichwörter: | Business & Economics; Economics; Fiscal policy; GOVERNMENT; Government spending; Net revenues; POLICY; Structural vector autoregression | Erscheinungsdatum: | 2014 | Herausgeber: | ELSEVIER SCIENCE SA | Journal: | ECONOMICS LETTERS | Volumen: | 123 | Ausgabe: | 1 | Startseite: | 26 | Seitenende: | 32 | Zusammenfassung: | We point out that fiscal multipliers derived from SVAR-models include the predicted future path of policy instruments. After the initial shock, net taxes and government expenditures react to each other and are autocorrelated. In a counterfactual simulation, we report fiscal multipliers that abstract from these dynamic responses. (C) 2013 Elsevier B.V. All rights reserved. |
ISSN: | 01651765 | DOI: | 10.1016/j.econlet.2013.11.036 |
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