DP10986 What Do We Know About Fiscal Multipliers?
|Author(s):||Carlo A. Favero, Madina Karamysheva|
|Publication Date:||December 2015|
|Keyword(s):||fiscal adjustment, fiscal plans, output growth|
|Programme Areas:||International Macroeconomics and Finance|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=10986|
The Empirical evidence on fiscal multipliers is very heterogenous. In this paper we first survey available estimates of fiscal multipliers to try to understand their heterogeneity. We provide a general framework that allows to make the identification and specification choices made by the different authors explict and leads hopefully to a better understanding of the heterogeneity of results.