Hidden Bibliographic Details
| Other authors / contributors: | Patnam, Manasa, author.
International Monetary Fund. Research Department, issuing body.
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| ISBN: | 1498349625
9781498349628
1498389805
9781498389808
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| ISSN: | 1018-5941
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| Notes: | "February 2016."
"Research Department."
Includes bibliographical references (pages 31-34).
Online resource; title from pdf title page (IMF.org Web site, viewed February 8, 2016).
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| Summary: | We estimate the average fiscal multiplier, allowing multipliers to be heterogeneous across countries or over time and correlated with the size of government spending. We demonstrate that this form of nonseparable unobserved heterogeneity is empirically relevant and address it by estimating a correlated random coefficient model. Using a panel dataset of 127 countries over the period 1994-2011, we show that not accounting for omitted heterogeneity produces a significant downward bias in conventional multiplier estimates. We rely on both crosssectional and time-series variation in spending shocks, exploiting the differential effects of oil price shocks on fuel subsidies, to identify the average government spending multiplier. Our estimates of the average multiplier range between 1.4 and 1.6. --Abstract.
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| Other form: | Print Version: Kitsios, Emmanouil Estimating Fiscal Multipliers with Correlated Heterogeneity Washington, D.C. : International Monetary Fund,2016 9781498389808
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| Standard no.: | 10.5089/9781498389808.001
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