Fiscal Policy and Economic Activity During Recessions in Advanced Economies

Author/Editor:

Axel Schimmelpfennig ; Selma Mahfouz ; Richard Hemming

Publication Date:

May 1, 2002

Electronic Access:

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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:

Using data for advanced economies, this paper investigates whether factors identified in the theoretical and empirical literature explain the effectiveness of fiscal policy in responding to recessions. The results are informative about the fiscal response to recessions but provide only a partial explanation of the impact of fiscal policy on economic activity. Overall, it would appear that fiscal multipliers are very small.

Series:

Working Paper No. 2002/087

Subject:

Automatic stabilizers Fiscal multipliers Fiscal policy Fiscal stance Fiscal stimulus Government debt management

Frequency:

Quarterly

English

Publication Date:

May 1, 2002

ISBN/ISSN:

9781451851038/1018-5941

Stock No:

WPIEA0872002

Pages:

24

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