|
|
|
|
||||
|
||||
Fiscal Policy and Growth: Do Financial Crises Make a Difference?António AfonsoEuropean Central Bank (ECB); ISEG - Technical University of Lisbon H. P. GrunerUniversity of Mannheim - Department of Economics; Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR) Christina Elisabeth KolerusUniversity of Mannheim - Center for Doctoral Studies in Economics and Management (CDSEM) March 25, 2010 Bank of Italy Occasional Paper Abstract: In this paper we assess to what extent in the existence of a financial crisis, government spending can contribute to mitigate economic downturns in the short run and whether such impact differs in crisis and non crisis times. We use panel analysis for a set of OECD and non-OECD countries for the period 1981-2007. The fiscal multiplier for the full sample for instrumented regular and crisis spending is about 0.6-0.8 considering the sample average government spending share of GDP of about one third. Altogether, we cannot reject the hypothesis that crisis spending and regular spending have the same impact using a variation of controls, sub-samples and specifications.
Number of Pages in PDF File: 22 Keywords: fiscal policy, financial crisis, growth, OECD, EU, panel analysis JEL Classification: C23, E62, E44, F43, H50 working papers seriesDate posted: January 15, 2012Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.344 seconds
