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 |
| JEL(s): | E62, H60 |
| 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.