Fiscal Multipliers Size, Determinants, and Use in Macroeconomic Projections

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 fisca...

Full description

Bibliographic Details
Main Author: Batini, Nicoletta
Other Authors: Eyraud, Luc, Forni, Lorenzo, Weber, Anke
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2014
Series:Technical Notes and Manuals
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary: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
Physical Description:33 pages
ISBN:9781498382458