Fiscal Multipliers in the Euro Area
16 Pages Posted: 15 Jan 2012
Date Written: March 25, 2010
In a standard linear structural VAR framework we analyse the size and sign of fiscal multipliers in the euro area, using a newly available quarterly dataset of fiscal variables for the period 1981-2007. From a policy perspective, the analysis of fiscal multipliers in “average times” provides insights on the impact of both fiscal stimulus and fiscal consolidation measures, provided “good” and “bad” times are on average similar.
Keywords: Euro area, SVAR, Fiscal Shocks, Fiscal multipliers
JEL Classification: E62, H30
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