{
  "title": "Fiscal Multipliers in the ECCU",
  "publication": "IMF Working Papers, May 22, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-multipliers-in-the-eccu-40556",
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  "summary": "The multipliers of taxes, and government consumption and investment expenditure for the Eastern Caribbean Currency Union (ECCU) are estimated using vector autoregression models with panel data.",
  "sections": [
    {
      "heading": "Research question and methodology",
      "content": "- Objective: Estimate the multipliers of taxes, and government consumption and investment expenditure for the Eastern Caribbean Currency Union (ECCU).\n- Method: Vector autoregression models with panel data (Panel VAR)."
    },
    {
      "heading": "Key findings",
      "content": "- Impact and long-run multipliers are below unity.\n- A great extent of the intended impulse ends up expanding imported demand.\n- The long-run multipliers of taxes and consumption expenditure are non-different from zero statistically.\n- Public investment has a long-run multiplier of 0.6."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Countercyclical policies to stimulate growth should focus on public investment."
    },
    {
      "heading": "Additional notes from the source text",
      "content": "- The study’s conclusion emphasizes limited domestic demand response to fiscal impulses from taxes and government consumption, with public investment showing materially larger long-run effects (long-run multiplier = 0.6).\n\nSource: Fiscal Multipliers in the ECCU, IMF Working Paper by Jesus R Gonzalez-Garcia, Antonio Lemus, and Mico Mrkaic (May 22, 2013).\n\n---\n\n Content in this bundle\n\n- Wp13117\n  - Wp13117 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp13117 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-multipliers-in-the-eccu-40556"
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    "Authors: Jesus R Gonzalez-Garcia, Antonio Lemus, Mico Mrkaic",
    "Published: May 22, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484359914.001",
    "Objective: Estimate the multipliers of taxes, and government consumption and investment expenditure for the Eastern Caribbean Currency Union (ECCU).",
    "Method: Vector autoregression models with panel data (Panel VAR).",
    "Impact and long-run multipliers are below unity.",
    "A great extent of the intended impulse ends up expanding imported demand.",
    "The long-run multipliers of taxes and consumption expenditure are non-different from zero statistically.",
    "Public investment has a long-run multiplier of 0.6.",
    "Countercyclical policies to stimulate growth should focus on public investment.",
    "The study’s conclusion emphasizes limited domestic demand response to fiscal impulses from taxes and government consumption, with public investment showing materially larger long-run effects (long-run multiplier = 0.6).",
    "**Wp13117**"
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