Fiscal Multipliers in the ECCU |
|
| Author:
| Gonzalez-Garcia, Jesus
Lemus, Antonio
Mrkaic, Mico |
| Series title: | IMF Working Papers |
| ISBN: | 978-1-4843-9805-0 |
| Publication Date: | May 2013 |
| Publisher: | International Monetary Fund
|
| Book Format: | Ebook |
| List Price: | Contact Supplier contact
|
Book Description:
|
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...
More DescriptionThe 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.