On the size of fiscal multipliers: A counterfactual analysis

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 123
Issue: 1
Pages: 26-32

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:123:y:2014:i:1:p:26-32
Journal Field
General
Author Count
2
Added to Database
2026-01-25