Fiscal Multipliers : Size, Determinants, and Use in Macroeconomic Projections

Author/Editor:

Nicoletta Batini ; Luc Eyraud ; Lorenzo Forni ; Anke Weber

Publication Date:

October 2, 2014

Electronic Access:

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Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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. This note provides general guidance on the definition, measurement, and use of fiscal multipliers. It reviews the literature related to their size, persistence and determinants. For countries where no reliable estimate is available, the note proposes a simple method to come up with reasonable values. Finally, the note presents options to incorporate multipliers in macroeconomic forecasts.

Series:

Technical Notes and Manuals No. 2014/04

Subject:

English

Publication Date:

October 2, 2014

ISBN/ISSN:

9781498382458/2075-8669

Stock No:

TNMEA2014004

Price:

$10.00 (Academic Rate:$10.00)

Format:

Paper

Pages:

33

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