What Determines Government Spending Multipliers? /

This paper studies how the effects of government spending vary with the economic environment. Using a panel of OECD countries, we identify fiscal shocks as residuals from an estimated spending rule and trace their macroeconomic impact under different conditions regarding the exchange rate regime, pu...

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Bibliografiske detaljer
Hovedforfatter: Muller, Gernot
Andre forfattere: Corsetti, Giancarlo, Meier, Andre
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2012.
Serier:IMF Working Papers; Working Paper ; No. 2012/150
Online adgang:Full text available on IMF
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520 3 |a This paper studies how the effects of government spending vary with the economic environment. Using a panel of OECD countries, we identify fiscal shocks as residuals from an estimated spending rule and trace their macroeconomic impact under different conditions regarding the exchange rate regime, public indebtedness, and health of the financial system. The unconditional responses to a positive spending shock broadly confirm earlier findings. However, conditional responses differ systematically across exchange rate regimes, as real appreciation and external deficits occur mainly under currency pegs. We also find output and consumption multipliers to be unusually high during times of financial crisis. 
538 |a Mode of access: Internet 
700 1 |a Corsetti, Giancarlo. 
700 1 |a Meier, Andre. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2012/150 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2012/150/001.2012.issue-150-en.xml  |z IMF e-Library