Fiscal Multipliers for Brazil
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
We find historical fiscal multipliers for Brazil around 0.5, larger than what existing literature typically identifies for the average emerging market. However, spending and public credit multipliers seem to have dropped to near zero since the global financial crisis, as the estimate for the whole sample period (1999-2014) is about ½ of that for precrisis years. By contrast, revenue multipliers have remained broadly stable. We conclude that fiscal consolidations based on expenditure and public credit retrenchment are likely to entail a modest drag on growth in the near term.
Series:
Working Paper No. 16/79
Subject:
Brazil Econometric models Economic growth Fiscal consolidation Fiscal policy Fiscal stimulus and multipliers Government expenditures Revenues
English
Publication Date:
March 25, 2016
ISBN/ISSN:
9781484307892/1018-5941
Stock No:
WPIEA2016079
Format:
Paper
Pages:
16
Please address any questions about this title to publications@imf.org