How best to measure discretionary fiscal policy? Assessing its impact on private spending

► We assess the impact of discretionary fiscal policy on private spending growth. ► An expansion in discretionary fiscal policy boosts growth in the short-run. ► Crowding-out effects emerge in the medium term especially for non-OECD countries. ► The effect of discretionary fiscal policy varies across regions and income groups. ► The effect of discretionary fiscal policy depends on countries' characteristics.