Comparing fiscal multipliers across models and countries in Europe

Grégory de Walque, Juha Kilponen, Massimiliano Pisani, Sebastian Schmidt, Vesna Corbo, Tibor Hledik, Josef Hollmayr, Samuel Hurtado, Paulo Júlio, Dmitry Kulikov, Matthieu Lemoine, Matija Lozej, Henrik Lundvall, José Maria, Brian Micallef, Dimitris Papageorgiou, Jakub Rysanek (), Dimitrios Sideris and Carlos Thomas

No 278, Working Paper Research from National Bank of Belgium

Abstract: This paper employs fifteen dynamic macroeconomic models maintained within the European System of Central Banks to assess the size of fiscal multipliers in European countries. Using a set of common simulations, we consider transitory and permanent shocks to government expenditures and different taxes. We investigate how the baseline multipliers change when monetary policy is transitorily constrained by the zero nominal interest rate bound, certain crisis-related structural features of the economy such as the share of liquidity-constrained households change, and the endogenous fiscal rule that ensures fiscal sustainability in the long run is specified in terms of labour income taxes instead of lump-sum taxes.

Keywords: Fiscal policy; Output multipliers; Model comparison; Zero lower bound (search for similar items in EconPapers)
JEL-codes: E12 E13 E17 E62 E63 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2015-03
New Economics Papers: this item is included in nep-eur and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

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Working Paper: Comparing fiscal multipliers across models and countries in Europe (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:nbb:reswpp:201503-278

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