Hidden Bibliographic Details
| Other authors / contributors: | Samaké, Issouf, author.
International Monetary Fund, issuing body.
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| ISBN: | 1299678416
9781299678415
9781484306222
1484306228
1484363221
9781484363225
9781484304488
1484304489
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| Notes: | "May 2013."
Includes bibliographical references (pages 48-50).
Online resource; title from PDF caption title (IMF, viewed September 4, 2013).
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| Summary: | The past several years of recession and slow recovery have raised much interest on the effect of fiscal stimulus on economic activity, even as high public debts in many countries would call for fiscal consolidation. To evaluate the delicate balance between stimulus and consolidation requires measuring the size of fiscal multipliers, which often depends on having quarterly data so that exogenous fiscal policy shocks can be identified. We estimate fiscal multipliers using a novel methodology for identifying fiscal shocks within a structural vector autoregressive approach using annual data while controling for debt feedback effects. The estimation focuses on regions with scarce quarterly data (mostly low-income countries), and uses results for advanced economies, emerging market countries, and other broad groupings for which alternative estimates are available to validate the methodology. Differently from advanced and emerging market economies, fiscal consolidation in low-income countries has only a small temporary negative effect on growth while raising medium-term output. Shifting the composition of public spending toward capital expenditure further supports long-run growth.
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| Other form: | Print version: 9781299678415
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| Standard no.: | 10.5089/9781484363225.001
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