Fiscal multipliers in Slovak economy DSGE simulation

Juraj Zeman

No WP 2/2016, Working and Discussion Papers from Research Department, National Bank of Slovakia

Abstract: In order to calculate fiscal multipliers for Slovakia, I used a small open DSGE model of Slovakia constructed by Zeman and Senaj (2009), augmented by more sophisticated fiscal sector that comprises of government expenditure components – consumption, investment and social transfers to liquidity constrained households as well as government revenue components – personal income tax, employer social contributions, VAT tax and lump-sum tax. The Slovak government has laid out a plan of public finance consolidation for the period from 2013 to 2017 in order to meet the Fiscal Compact criteria. According to fiscal multipliers calculated in this paper the consolidation will cause an aggregate loss of 2.5 % of GDP during this period.

Keywords: Fiscal multipliers; expenditure and revenue components; DSGE simulations (search for similar items in EconPapers)
JEL-codes: E32 E62 H20 H50 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2016-05
New Economics Papers: this item is included in nep-dge, nep-mac and nep-pbe
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:svk:wpaper:1038

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