04015nam 2200661Ia 450 991082461170332120200520144314.01-4755-2871-X1-4755-5692-6(CKB)2550000000107541(EBL)1606783(SSID)ssj0000944125(PQKBManifestationID)11528599(PQKBTitleCode)TC0000944125(PQKBWorkID)10982502(PQKB)11701009(Au-PeEL)EBL1606783(CaPaEBR)ebr10579627(OCoLC)794992334(IMF)WPIEE2012150(IMF)WPIEA2012150(MiAaPQ)EBC1606783(EXLCZ)99255000000010754120111102d2012 uy 0engur|n|---|||||txtccrWhat determines government spending multipliers? /Giancarlo Corsetti, Andre Meier, and Gernot J. Muller1st ed.Washington, D.C. International Monetary Fundc20121 online resource (47 p.)IMF working paper ;12/150Description 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 paper ;12/150.Multiplier (Economics)Monetary policyMultiplier (Economics)Monetary policy.332.1Corsetti Giancarlo122773Meier Andre862014Muller Gernot J1756219MiAaPQMiAaPQMiAaPQBOOK9910824611703321What determines government spending multipliers4193359UNINA