A Simple Method to Compute Fiscal Multipliers

Author/Editor:

Nicoletta Batini ; Luc Eyraud ; Anke Weber

Publication Date:

June 9, 2014

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Fiscal multipliers are important tools for macroeconomic projections and policy design. In many countries, little is known about the size of multipliers, as data availability limits the scope for empirical research. For these countries, we propose a simple method—dubbed the “bucket approach”—to come up with reasonable multiplier estimates. The approach bunches countries into groups (or “buckets”) with similar multiplier values, based on their characteristics. It also takes into account the effect of some temporary factors, such as the state of the business cycle.

Series:

Working Paper No. 14/93

Subject:

English

Publication Date:

June 9, 2014

ISBN/ISSN:

9781498357999/1018-5941

Stock No:

WPIEA2014093

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

33

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