Fiscal Multipliers: Size, Determinants, and Use in Macroeconomic Projections

Business & Finance, Economics, Public Finance, Accounting, Taxation, Finance & Investing
Cover of the book Fiscal Multipliers: Size, Determinants, and Use in Macroeconomic Projections by Nicoletta Batini, Luc Eyraud, Lorenzo Forni, Anke Weber, INTERNATIONAL MONETARY FUND
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Author: Nicoletta Batini, Luc Eyraud, Lorenzo Forni, Anke Weber ISBN: 9781498322430
Publisher: INTERNATIONAL MONETARY FUND Publication: October 2, 2014
Imprint: INTERNATIONAL MONETARY FUND Language: English
Author: Nicoletta Batini, Luc Eyraud, Lorenzo Forni, Anke Weber
ISBN: 9781498322430
Publisher: INTERNATIONAL MONETARY FUND
Publication: October 2, 2014
Imprint: INTERNATIONAL MONETARY FUND
Language: English
Fiscal multipliers are important tools for macroeconomic projections and policy design. In many countries, little is known about the size of multipliers, as data availability limits the scope for empirical research. This note provides general guidance on the definition, measurement, and use of fiscal multipliers. It reviews the literature related to their size, persistence and determinants. For countries where no reliable estimate is available, the note proposes a simple method to come up with reasonable values. Finally, the note presents options to incorporate multipliers in macroeconomic forecasts.
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Fiscal multipliers are important tools for macroeconomic projections and policy design. In many countries, little is known about the size of multipliers, as data availability limits the scope for empirical research. This note provides general guidance on the definition, measurement, and use of fiscal multipliers. It reviews the literature related to their size, persistence and determinants. For countries where no reliable estimate is available, the note proposes a simple method to come up with reasonable values. Finally, the note presents options to incorporate multipliers in macroeconomic forecasts.

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