Article ID Journal Published Year Pages File Type
5059262 Economics Letters 2014 7 Pages PDF
Abstract
We point out that fiscal multipliers derived from SVAR-models include the predicted future path of policy instruments. After the initial shock, net taxes and government expenditures react to each other and are autocorrelated. In a counterfactual simulation, we report fiscal multipliers that abstract from these dynamic responses.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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On the size of fiscal multipliers: A counterfactual analysis
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