Working Paper: CEPR ID: DP10986
Authors: Carlo A. Favero; Madina Karamysheva
Abstract: The Empirical evidence on fiscal multipliers is very heterogenous. In this paper we first survey available estimates of fiscal multipliers to try to understand their heterogeneity. We provide a general framework that allows to make the identification and specification choices made by the different authors explict and leads hopefully to a better understanding of the heterogeneity of results.
Keywords: Fiscal Adjustment; Fiscal Plans; Output Growth
JEL Codes: E62; H60
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| fiscal adjustments (E62) | output effect (E23) |
| deviations from fiscal rules (H68) | measurement of multipliers (C39) |
| fiscal plans (E62) | calculation of multipliers (C39) |
| structural models (E10) | simulation of fiscal plans (E17) |