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Fiscal Policy Effectiveness in a Small Open Economy

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by Antonio Mr. David
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Fiscal Policy Effectiveness in a Small Open Economy by Antonio Mr. David

This paper presents estimates of fiscal multipliers in Paraguay following different econometric techniques and identification approaches. The results point to multipliers for capital expenditure that are substantially higher than multipliers for current expenditure. In addition, the evidence suggests that tax multipliers are close to zero when using conventional identification approaches, but estimates can be much larger when considering the "narrative" approach. One implication of the results is that the balanced budget multiplier for Paraguay i.e. the effect of on output of an increase in expenditures (in particular capital expenditure) financed by taxes is likely to be positive.

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Ebook Details
Pages: 29
Size: 1.7 MB
Publisher: INTERNATIONAL MONETARY FUND
Date published:   2017
ISBN: 9781475588286 (DRM-EPUB)
9781475588347 (DRM-PDF)

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This product is listed in the following categories:

Nonfiction > Business & Economics > Economics
Nonfiction > Business & Economics > International > Economics
Nonfiction > Business & Economics > Economics > Macroeconomics

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06/22/2017
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