 Fiscal multipliers in the euro area: A comparative study⋆Franziska Collingro and Michael Frenkel The Quarterly Review of Economics and Finance, 2022, vol. 84, issue C, 386-397 Abstract: Usually, studies on fiscal policy multipliers focus on a single country. In this paper, we estimate and compare the output effect of increases in government consumption and government investment in eleven euro area economies. Using quarterly data from Q1 2000 to Q4 2018, we identify exogenous increases in government spending based on a Cholesky decomposition, and compute impulse response functions based on linear projections. Our results suggest that typically euro area economies, that were severely affected by the Global Financial Crisis and the European Sovereign Debt Crisis, feature significant and negative output effects, while euro area economies that were only temporarily adversely affected by these crises feature significant and positive output effects. Our results are robust to different specifications of the estimation equation. Nevertheless, there is one exception from our general findings. Keywords: Euro area; Fiscal policy multipliers; Sovereign Debt Crisis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:84:y:2022:i:c:p:386-397 DOI: 10.1016/j.qref.2020.08.005 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
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