We just estimated twenty million fiscal multipliers

Publication: Working/Discussion PaperWU Working Paper

Abstract

We analyse the role played by data and specification choices as determinants of the size of the fiscal multipliers obtained using structural vector autoregressive models. The results, based on over twenty million fiscal multiplier estimated for European countries, indicate that many seemingly harmless modelling choices have a significant effect on the size and precision of fiscal multiplier estimates. In addition to the structural shock identification strategy, these modelling choices include the definition of spending and taxes, the national accounts system employed, the use of particular interest rates or inflation measures, or whether data are smoothed prior to estimation.
Original languageEnglish
Place of PublicationVienna
PublisherWU Vienna University of Economics and Business
Publication statusPublished - 1 Aug 2018

Publication series

NameDepartment of Economics Working Paper Series
No.268

WU Working Paper Series

  • Department of Economics Working Paper Series

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