Measuring the fiscal multiplier when plans take time to implement
Kevin Lee (),
James Morley (),
Kian Ong () and
No 2018/10, Discussion Papers from University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM)
The paper describes how to measure the fiscal multiplier using budget statements on planned government spending in the current and following years alongside the data on actual outcomes. The multiplier effects can be decomposed to distinguish the effects of ‘policy reactions’ versus ‘policy initiatives’, with the latter shown to be substantially larger than the former in a study of annual US data over 1957-2016. It is noted that the fiscal initiatives undertaken following the events of 2007/8 played an important role in mitigating the recessionary effects of the global financial crisis in the US.
Keywords: Government spending plans; real-time data; fiscal multiplier (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Measuring the fiscal multiplier when plans take time to implement (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:not:notcfc:18/10
Access Statistics for this paper
More papers in Discussion Papers from University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM) School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().