Fiscal Multipliers in a Panel of Countries

Juan Contreras and Battelle Holly

No 2014-15, Working Papers from Banco de México

Abstract: We estimate fiscal multipliers in a panel of countries using dynamic panel techniques and quarterly data for 55 countries. By using a GMM estimator and lagged dependent variables as instruments in a SVAR model, we attempt to correct for the biases present in this setting, to alleviate concerns about causality, and to decrease potential effects of third factors. Contrary to previous research, we find no strong evidence of monetary accommodation, a positive and larger fiscal multiplier in developing than in high-income countries, and zero in high-debt countries and in flexible exchange rates countries.

Keywords: Fiscal multipliers; Panel of countries; SVAR; GMM (search for similar items in EconPapers)
JEL-codes: E62 E63 H60 (search for similar items in EconPapers)
Date: 2014-08
New Economics Papers: this item is included in nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.banxico.org.mx/publications-and-press/ ... -1C0294BFB1BE%7D.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdm:wpaper:2014-15

Access Statistics for this paper

More papers in Working Papers from Banco de México Contact information at EDIRC.
Bibliographic data for series maintained by Subgerencia de desarrollo de sistemas ().