Fiscal Multipliers in the Euro Area

16 Pages Posted: 15 Jan 2012

See all articles by Pablo Burriel

Pablo Burriel

Banco de España

Francisco de Castro

Banco de España

Daniel Garrote

Banco de España

Esther Gordo Mora

Banco de España

Joan Paredes

European Central Bank

Javier J. Pérez

Banco de España - Research Department

Date Written: March 25, 2010

Abstract

In a standard linear structural VAR framework we analyse the size and sign of fiscal multipliers in the euro area, using a newly available quarterly dataset of fiscal variables for the period 1981-2007. From a policy perspective, the analysis of fiscal multipliers in “average times” provides insights on the impact of both fiscal stimulus and fiscal consolidation measures, provided “good” and “bad” times are on average similar.

Keywords: Euro area, SVAR, Fiscal Shocks, Fiscal multipliers

JEL Classification: E62, H30

Suggested Citation

Burriel, Pablo and Castro, Francisco de and Garrote, Daniel and Gordo Mora, Esther and Paredes, Joan and Perez, Javier J., Fiscal Multipliers in the Euro Area (March 25, 2010). Bank of Italy Occasional Paper. Available at SSRN: https://ssrn.com/abstract=1985210 or http://dx.doi.org/10.2139/ssrn.1985210

Pablo Burriel

Banco de España ( email )

Madrid 28014
Spain

Francisco de Castro

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Daniel Garrote

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Esther Gordo Mora (Contact Author)

Banco de España ( email )

Madrid 28014
Spain

Joan Paredes

European Central Bank ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Javier J. Perez

Banco de España - Research Department ( email )

Alcala 50
28014 Madrid
Spain

HOME PAGE: http://www.bde.es/investigador/staff/95.htm

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