Fiscal Multipliers in Malta
Ian Borg
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Ian Borg: Central Bank of Malta
No WP/06/2014, CBM Working Papers from Central Bank of Malta
Abstract:
This paper employs a Structural Vector Autoregression approach à la Blanchard and Perotti (2002) to investigate the impact of discretionary fiscal policy shocks on key macroeconomic variables in Malta. In order to gauge the quantitative impact of fiscal policy over the period 1995 to 2012, impact and cumulative multipliers are calculated. The response of GDP to government expenditure shocks and its components is low on impact but larger than one cumulatively. Moreover, private consumption responds positively to shocks in government spending, while private investment declines after a positive innovation to government expenditure.
JEL-codes: E32 E62 H20 H50 (search for similar items in EconPapers)
Pages: 39 pgs
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https://www.centralbankmalta.org/file.aspx?f=1095 First version, 2014 (application/pdf)
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Persistent link: https://EconPapers.repec.org/RePEc:mlt:wpaper:0614
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