Public investment fiscal multipliers: An empirical assessment for European countries
Matteo Deleidi (),
Francesca Iafrate and
Enrico Levrero ()
Structural Change and Economic Dynamics, 2020, vol. 52, issue C, 354-365
This paper aims to estimate fiscal multipliers in eleven Eurozone countries. To do this, we make use of yearly data provided by the OECD for the 1970–2016 period. By using the Local Projections approach on a panel dataset and considering different model specifications, we estimate the magnitude assumed by fiscal multipliers in order to assess whether an increase in government investment generates a ‘Keynesian effect’ on the level of the GDP. Our findings suggest that fiscal multipliers tend to be larger than one and an increase in public investment engenders a permanent and persistent effect on the level of output also when fiscal foresights are considered. Additional model specifications suggest that government investment fiscal multipliers are lower when the post-crisis period is excluded by our sample and are larger in Southern countries than Northern ones.
Keywords: Fiscal multipliers; Government investment; Local projections; Euro area (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: PUBLIC INVESTMENT FISCAL MULTIPLIERS: AN EMPIRICAL ASSESSMENT FOR EUROPEAN COUNTRIES (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:52:y:2020:i:c:p:354-365
Access Statistics for this article
Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen
More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().