Fiscal multipliers in a small open economy: the case of Austria

Investor logo
Authors

ČAPEK Jan CRESPO CUARESMA Jesús HOLLER Johannes SCHUSTER Philip

Year of publication 2022
Type Article in Periodical
Magazine / Source Oxford Economic Papers
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web https://doi.org/10.1093/oep/gpab027
Doi http://dx.doi.org/10.1093/oep/gpab027
Keywords fiscal multiplier;small open economy;SVAR;FAVAR;Austria
Description We estimate fiscal multipliers for Austria in a framework of model uncertainty emanating from the choice of a particular econometric model. We present a comprehensive framework that allows to assess the effects of different multiplier definitions and choices related to the data, the model employed, and further technical choices associated with the specification of the model exert on fiscal multiplier estimates. The mean present-value government spending multiplier over all models entertained, based on around 3,000 estimates, is 0.68. Estimates of the peak spending multiplier for Austria tend to be larger than present-value spending multipliers, with a mean value of 0.85. The magnitude of the present-value tax multiplier is relatively high, with an average value across specifications of -1.12 and the mean peak tax multiplier is -0.54 for all specifications used.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.