Assessing fiscal multipliers in times of crisis: evidence from selected CEE countries

Bogdan Muraraşu (), Cristina Anghelescu () and Robert Adrian Grecu ()
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Bogdan Muraraşu: Bucharest University of Economic Studies
Cristina Anghelescu: Bucharest University of Economic Studies
Robert Adrian Grecu: Bucharest University of Economic Studies

Empirical Economics, 2023, vol. 65, issue 4, No 5, 1627-1654

Abstract: Abstract The COVID-19 pandemic proved to be an unprecedented socio-economic crisis in the last decades. More than three years after its outbreak, there is still uncertainty regarding its future evolution. National and international authorities adopted a prompt and synchronized response to limit the adverse effects of the health crisis, in terms of socio-economic damage. Against this background, this paper assesses the efficiency of the measures implemented by fiscal authorities in selected Central and Eastern European countries to ameliorate the economic repercussions of the crisis. The analysis reveals that the impact of expenditure-side measures is stronger than that of revenue-side ones. Additionally, the results of a time-varying parameter model indicate that the fiscal multipliers are higher in times of crisis. In view of the ongoing war in Ukraine, the related geopolitical turmoil and energy crisis, the findings of this paper are especially pertinent, given the need for additional fiscal support.

Keywords: Fiscal multipliers; Government measures; Emerging economies; Supply shocks (search for similar items in EconPapers)
JEL-codes: C11 C32 E62 E65 H50 H60 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s00181-023-02407-9

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