Abstract

http://ssrn.com/abstract=1908565
 
 

References (24)



 
 

Citations (2)



 
 

Footnotes (12)



 


 



Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy


Carlo A. Favero


Bocconi University - Department of Finance; Centre for Economic Policy Research (CEPR)

Francesco Giavazzi


Bocconi University - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Jacopo Perego


Bocconi University

August 2011

CEPR Discussion Paper No. DP8517

Abstract:     
This paper shows how the richer frequency and variety of fiscal policy shocks available in an international sample can be analyzed recognizing the heterogeneity that exists across different countries. The main conclusion of our empirical analysis is that the question 'what is the fiscal policy multiplier' is an ill-posed one. There is no unconditional fiscal policy multiplier. The effect of fiscal policy on output is different depending on the different debt dynamics, the different degree of openness and the different fiscal reaction functions across different countries. There are many fiscal multipliers and an average fiscal multiplier is of very little use to describe the effect of exogenous shifts in fiscal policy on output.

Number of Pages in PDF File: 38

Keywords: fiscal policy, global VAR models, government budget constraint, public debt

JEL Classification: E62, H60

working papers series





Date posted: August 12, 2011  

Suggested Citation

Favero, Carlo A. and Giavazzi, Francesco and Perego, Jacopo, Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy (August 2011). CEPR Discussion Paper No. DP8517. Available at SSRN: http://ssrn.com/abstract=1908565

Contact Information

Carlo A. Favero (Contact Author)
Bocconi University - Department of Finance ( email )
Via Roentgen 1
Milano, MI 20136
Italy
HOME PAGE: http://www.igier.unibocconi.it\favero
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Francesco Giavazzi
Bocconi University - Department of Economics ( email )
Via Gobbi 5
Milan, 20136
Italy
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Jacopo Perego
Bocconi University ( email )
Via Sarfatti, 25
Milan, MI 20136
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 146
Downloads: 4
References:  24
Citations:  2
Footnotes:  12

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.578 seconds