Publication:
Why Do Fiscal Multipliers Depend on Fiscal Positions?

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dc.contributor.authorHuidrom, Raju
dc.contributor.authorKose, M. Ayhan
dc.contributor.authorLim, Jamus J.
dc.contributor.authorOhnsorge, Franziska L.
dc.date.accessioned2019-03-21T18:44:51Z
dc.date.available2019-03-21T18:44:51Z
dc.date.issued2019-03
dc.description.abstractThe fiscal position can affect fiscal multipliers through two channels. Through the Ricardian channel, households reduce consumption in anticipation of future fiscal adjustments when fiscal stimulus is implemented from a weak fiscal position. Through the interest rate channel, fiscal stimulus from a weak fiscal position heightens investors' concerns about sovereign credit risk, raises economy-wide borrowing cost, and reduces private domestic demand. The paper documents empirically the relevance of these two channels using an Interactive Panel Vector Auto Regression model. It finds that fiscal multipliers tend to be smaller when fiscal positions are weak than strong.en
dc.identifierhttp://documents.worldbank.org/curated/en/696521553109989507/Why-Do-Fiscal-Multipliers-Depend-on-Fiscal-Positions
dc.identifier.doi10.1596/1813-9450-8784
dc.identifier.urihttps://hdl.handle.net/10986/31432
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8784
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFISCAL MULTIPLIER
dc.subjectFISCAL POSITION
dc.subjectFISCAL TRENDS
dc.subjectSTATE DEPENDENCY
dc.subjectRICARDIAN CHANNEL
dc.subjectINTEREST RATE
dc.subjectBUSINESS CYCLES
dc.subjectVECTOR AUTOREGRESSION
dc.titleWhy Do Fiscal Multipliers Depend on Fiscal Positions?en
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleWhy Do Fiscal Multipliers Depend on Fiscal Positions?
okr.date.disclosure2019-03-20
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/696521553109989507/Why-Do-Fiscal-Multipliers-Depend-on-Fiscal-Positions
okr.guid696521553109989507
okr.identifier.doi10.1596/1813-9450-8784
okr.identifier.externaldocumentum090224b086ab5dc9_1_0
okr.identifier.internaldocumentum30918431
okr.identifier.reportWPS8784
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/696521553109989507/pdf/WPS8784.pdfen
okr.statistics.combined5248
okr.statistics.dr696521553109989507
okr.statistics.drstats4368
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicMacroeconomics and Economic Growth::Macroeconomic Management
okr.unitMacroeconomics, Trade and Investment Global Practice
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