Fiscal Multipliers in the Euro Area

Burriel, Pablo; Castro, Francisco de; Garrote, Daniel; Gordo Mora, Esther; Paredes, Joan; Pérez, Javier J.

doi:10.2139/ssrn.1985210

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Fiscal Multipliers in the Euro Area

Bank of Italy Occasional Paper

16 Pages Posted: 15 Jan 2012

See all articles by Pablo Burriel

Esther Gordo Mora

Independent Authority for Fiscal Responsibility

Javier J. Pérez

Banco de España - Research Department

Date Written: March 25, 2010

Abstract

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

Suggested Citation: Suggested Citation

Burriel, Pablo and Castro, Francisco de and Garrote, Daniel and Gordo Mora, Esther and Paredes, Joan and Perez, Javier J., Fiscal Multipliers in the Euro Area (March 25, 2010). Bank of Italy Occasional Paper, Available at SSRN: https://ssrn.com/abstract=1985210 or http://dx.doi.org/10.2139/ssrn.1985210