European Parliament Library

Fiscal Multipliers in the ECCU, Jesus Gonzalez-Garcia, Antonio Lemus, Mico Mrkaic

The multipliers of taxes, and government consumption and investment expenditure for the Eastern Caribbean Currency Union (ECCU) are estimated using vector autoregression models with panel data. The impact and long-run multipliers are below unity, suggesting that a great extent of the intended impulse ends up expanding imported demand. The long-run multipliers of taxes and consumption expenditure are non-different from zero statistically, while public investment has a long-run multiplier of 0.6. The results suggest that countercyclical policies to stimulate growth should focus on public investment
Table Of Contents
Cover; Contents; I. Introduction; II. The Role of Fiscal Multipliers; III. Methodology and Data; A. The approach; B. Data issues; C. Interpolation of real GDP to obtain quarterly series; IV. Methodology for Estimation of Fiscal Multipliers; A. Description of the SVAR models used; B. Calculation of fiscal multipliers; C. The direct effects of fiscal Shocks on GDP; Figures; 1. Fiscal multipliers based on the direct effects of fiscal shocks; D. A complete description of the effects of fiscal shocks on GDP; 2. Fiscal multipliers taking into account interaction of variables; V. Conclusion
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (18 p.)
Specific Material Designation
Form Of Item

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