Economics at your fingertips  

Ireland’s Fiscal Spending Multipliers

Kate Ivory, Eddie Casey () and Niall Conroy ()
Additional contact information
Kate Ivory: Irish Fiscal Advisory Council

The Economic and Social Review, 2020, vol. 51, issue 1, 133-172

Abstract: This paper estimates government spending multipliers for Ireland. We add to the existing literature on Ireland-specific fiscal spending multipliers in two key ways. First, we focus on measures of economic activity that remove distortions caused by foreign-owned multinational enterprises, thus allowing us to derive truer estimates of the impact on the domestic economy of changes in fiscal policy. Second, we employ a number of statistical approaches in order to sense-check the multiplier estimates we derive, including standard SVAR approaches, an expectations-augmented VAR (EVAR) approach, and estimates based on a large-scale structural model. Our results show that government investment can have positive and significant initial impacts on Irish output, though these effects tend to disappear and/or become statistically insignificant over the longer term. Other forms of fiscal spending do not have a statistically significant effect.

Keywords: fiscal spending; multipliers; Ireland (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this article

More articles in The Economic and Social Review from Economic and Social Studies
Bibliographic data for series maintained by Aedin Doris ().

Page updated 2022-12-04
Handle: RePEc:eso:journl:v:51:y:2020:i:1:p:133-172