A Simple Method to Compute Fiscal Multipliers
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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. 2014/093
Subject:
Automatic stabilizers Exchange rate arrangements Expenditure Fiscal multipliers Fiscal policy Foreign exchange
English
Publication Date:
June 9, 2014
ISBN/ISSN:
9781498357999/1018-5941
Stock No:
WPIEA2014093
Pages:
33
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