Fiscal multipliers in non-EMU CEE countries

Piotr Krajewski ()
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Piotr Krajewski: University of Lodz

No 5306957, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The effects of fiscal policy in non-EMU Central and Eastern European counties are analysed in the study. The analysis is based on dynamic stochastic general equilibrium model, which takes into account both optimizing and rule-of-thumb households. Results of the study indicate that the share of rule-of-thumb households has significant impact on government spending multipliers. On one hand, the fiscal multiplier reaches three in Hungary, which is the country with highest share of rule-of-thumb households among non-EMU CEE countries. On the other hand, in the Czech Republic, which is the country with lowest share of rule-of-thumb households, the fiscal multiplier is lower than one. Moreover, the results show that effects of government spending shocks on consumption are very sensitive to the share of rule-of-thumb households.

Keywords: fiscal multiplier; government spending; rule-of-thumb households (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
Pages: 1 page
Date: 2016-11
New Economics Papers: this item is included in nep-eec, nep-mac and nep-tra
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Published in Proceedings of the Proceedings of the 26th and the 27th International Academic Conference (Istanbul, Prague), Nov 2016, pages 70-70

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:5306957

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