A Simple Method to Compute Fiscal Multipliers

 
Author/Editor: Nicoletta Batini ; Luc Eyraud ; Anke Weber
 
Publication Date: June 09, 2014
 
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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(s): Fiscal stimulus and multipliers | Business cycles | Fiscal consolidation | Fiscal policy | Monetary policy

 
English
Publication Date: June 09, 2014
ISBN/ISSN: 9781498357999/1018-5941 Format: Paper
Stock No: WPIEA2014093 Pages: 33
Price:
US$18.00
 
 
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