Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy
36 Pages Posted: 8 Aug 2011 Last revised: 13 Mar 2022
There are 2 versions of this paper
Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy
Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy
Date Written: August 2011
Abstract
This paper shows how the richer frequency and variety of fiscal policy shocks available in an international sample can be analyzed recognizing the heterogeneity that exists across different countries. The main conclusion of our empirical analysis is that the question "what is the fiscal policy multiplier" is an ill-posed one. There is no unconditional fiscal policy multiplier. The effect of fiscal policy on output is different depending on the different debt dynamics, the different degree of openness and the different fiscal reaction functions across different countries. There are many fiscal multipliers and an average fiscal multiplier is of very little use to describe the effect of exogenous shifts in fiscal policy on output.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By António Afonso and Priscilla Toffano
-
By António Afonso and Priscilla Toffano
-
By António Afonso and Priscilla Toffano
-
What Do We Really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic
By Christophe Rault and Antonio Afonso
-
What Do We Really Know About Fiscal Sustainability in the EU? A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
What Do We Really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
Fiscal Sustainability in the EU: A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
Fiscal Policy Responsiveness, Persistence and Discretion
By António Afonso, Luca Agnello, ...