The international effect of US government expenditure

Fabrizio Carmignani ()

Economic Modelling, 2015, vol. 47, issue C, 63-73

Abstract: The paper estimates a system of structural equations to determine the effect of US government expenditure on the business cycle of other OECD countries. The estimated coefficients from the system are used in a simulation exercise to compute the dollar value of the international multiplier of the US government expenditure. This multiplier turns out to be positive: an extra dollar of the US government expenditure increases foreign output by 7 cents on average. However, the size of the multiplier significantly differs across sub-samples of countries and over time.

Keywords: Fiscal policy; Spillover effect; Multiplier; SUR (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999315000280
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:47:y:2015:i:c:p:63-73

DOI: 10.1016/j.econmod.2015.02.011

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().