05724oam 22011294 450 991077950080332120230802005524.01-4755-2871-X1-4755-5692-6(CKB)2550000000107541(EBL)1606783(SSID)ssj0000944125(PQKBManifestationID)11528599(PQKBTitleCode)TC0000944125(PQKBWorkID)10982502(PQKB)11701009(MiAaPQ)EBC1606783(Au-PeEL)EBL1606783(CaPaEBR)ebr10579627(OCoLC)794992334(IMF)WPIEE2012150(IMF)WPIEA2012150(EXLCZ)99255000000010754120020129d2012 uf 0engur|n|---|||||txtccrWhat Determines Government Spending Multipliers? /Gernot Müller, Andre Meier, Giancarlo CorsettiWashington, D.C. :International Monetary Fund,2012.1 online resource (47 p.)IMF Working PapersDescription based upon print version of record.1-4755-0444-6 1-4755-0421-7 Includes bibliographical references.Cover; 1 Introduction; 2 Fiscal policy in different economic environments; 2.1 A theoretical benchmark; 2.2 Pegged exchange rates; 2.3 Weak public finances; 2.4 Financial crises; 3 Empirical strategy; 3.1 Identification issues; 3.2 The first step: Identifying government spending shocks; 3.3 The second step: Tracing the effects of government spending in different economic environments; 3.4 The data; 4 Systematic and non-systematic changes in government spending; 5 The effects of government spending shocks; 5.1 Unconditional effects; 5.2 Accounting for the economic environment5.3 Sensitivity analysis6 Conclusion; References; Tables; Table 1. Composition of Initial and Final Samples; Table 2. Data Sources and Definitions; Table 3. Results of First-Step Regression; Table 4. Summary Statistics for Estimated Government Spending Shocks; Table 5. Overview of Dummy Characteristics; Figure 5: Results for narrow definition of financial crisis; Figure 6: Results for alternative definition of weak public finances (government debt > 120 percent of GDP and/or lagged net borrowing > 7 percent of GDP); Figure 7: Results for difference specificationFigure 8: Results for first-step specification which includes contemporaneous value of crisis dummyFigure 9: Results without CLI in first step; Figure 10: Results for sample without 2007-2008; Figure 11: Results for sample without United StatesThis paper studies how the effects of government spending vary with the economic environment. Using a panel of OECD countries, we identify fiscal shocks as residuals from an estimated spending rule and trace their macroeconomic impact under different conditions regarding the exchange rate regime, public indebtedness, and health of the financial system. The unconditional responses to a positive spending shock broadly confirm earlier findings. However, conditional responses differ systematically across exchange rate regimes, as real appreciation and external deficits occur mainly under currency pegs. We also find output and consumption multipliers to be unusually high during times of financial crisis.IMF Working Papers; Working Paper ;No. 2012/150Multiplier (Economics)Monetary policyFinancial Risk ManagementimfForeign ExchangeimfPublic FinanceimfFiscal PolicyimfComparative or Joint Analysis of Fiscal and Monetary PolicyimfStabilizationimfTreasury PolicyimfOpen Economy MacroeconomicsimfNational Government Expenditures and Related Policies: GeneralimfFinancial CrisesimfPublic finance & taxationimfCurrencyimfForeign exchangeimfMacroeconomicsimfEconomic & financial crises & disastersimfExpenditureimfFiscal policyimfFinancial crisesimfExchange rate arrangementsimfReal exchange ratesimfExpenditures, PublicimfUnited StatesimfMultiplier (Economics)Monetary policy.Financial Risk ManagementForeign ExchangePublic FinanceFiscal PolicyComparative or Joint Analysis of Fiscal and Monetary PolicyStabilizationTreasury PolicyOpen Economy MacroeconomicsNational Government Expenditures and Related Policies: GeneralFinancial CrisesPublic finance & taxationCurrencyForeign exchangeMacroeconomicsEconomic & financial crises & disastersExpenditureFiscal policyFinancial crisesExchange rate arrangementsReal exchange ratesExpenditures, PublicMüller Gernot1472690Meier Andre862014Corsetti Giancarlo122773DcWaIMFBOOK9910779500803321What Determines Government Spending Multipliers3698043UNINA