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.