Economics at your fingertips  

Characterizing G-multipliers in Canada

Fabrice Dabiré (), Hashmat Khan (), Patrick Richard () and Jean-François Rouillard
Additional contact information
Fabrice Dabiré: Université de Sherbrooke
Patrick Richard: Université de Sherbrooke

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

Abstract: We estimate the effects of government spending (G) on GDP in Canada using the sign restricted VAR approach with quarterly data that spans from 1961 to 2019. The variables that enter our vector autoregressive model are carefully chosen to reflect the distinct characteristics of the Canadian economy, in particular, its linkages with US business cycles. We find large median multipliers that are above 1 on impact and in the long-run. They are not specific to the state of the economy. Moreover, neither net exports nor real exchange rates nor terms-of-trade respond significantly to G shocks. We also find large and long-lasting effects of shocks specific to government spending in investment and in consumption on output.

Keywords: government spending multipliers; sign restrictions; Canadian economy (search for similar items in EconPapers)
JEL-codes: C51 E32 E62 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2021-10, Revised 2023-03
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Working Paper: Characterizing G-multipliers in Canada (2023) Downloads
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 paper

More papers in Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke Contact information at EDIRC.
Bibliographic data for series maintained by Jean-François Rouillard ().

Page updated 2024-02-28
Handle: RePEc:shr:wpaper:21-01