Estimating fiscal multipliers with correlated heterogeneity /

Estimating fiscal multipliers with correlated heterogeneity /

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Bibliographic Details
Author / Creator:	Kitsios, Emmanouil, (IMF staff), author.
Imprint:	[Washington, D.C.] : International Monetary Fund, 2016.
Description:	1 online resource (51 pages) : color illustrations.
Language:	English
Series:	IMF working paper ; WP/16/13 IMF working paper ; WP/16/13.
Subject:	National income -- Econometric models. Expenditures, Public -- Econometric models. Government spending policy -- Econometric models. Fiscal policy -- Econometric models. Expenditures, Public -- Econometric models. Fiscal policy -- Econometric models. Government spending policy -- Econometric models. National income -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12505697

Hidden Bibliographic Details
Other authors / contributors:	Patnam, Manasa, author. International Monetary Fund. Research Department, issuing body.
ISBN:	1498349625 9781498349628 1498389805 9781498389808
ISSN:	1018-5941
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).
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.
Other form:	Print Version: Kitsios, Emmanouil Estimating Fiscal Multipliers with Correlated Heterogeneity Washington, D.C. : International Monetary Fund,2016 9781498389808
Standard no.:	10.5089/9781498389808.001

Description
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.
Item Description:	"February 2016." "Research Department."
Physical Description:	1 online resource (51 pages) : color illustrations.
Bibliography:	Includes bibliographical references (pages 31-34).
ISBN:	1498349625 9781498349628 1498389805 9781498389808
ISSN:	1018-5941