Comparing fiscal multipliers across models and countries in Europe

Arbeitspapier

This paper employs fifteen dynamic macroeconomic models maintained within the European System of Central Banks to assess the size of fiscal multipliers in European countries. Using a set of common simulations, we consider transitory and permanent shocks to government expenditures and different taxes. We investigate how the baseline multipliers change when monetary policy is transitorily constrained by the zero nominal interest rate bound, certain crisis-related structural features of the economy such as the share of liquidity-constrained households change, and the endogenous fiscal rule that ensures fiscal sustainability in the long run is specified in terms of labour income taxes instead of lump-sum taxes.

Object Details

• ISBN: 978-92-899-1500-7
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 1760

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; General Aggregative Models: Neoclassical ; General Aggregative Models: Forecasting and Simulation: Models and Applications ; Fiscal Policy ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
• Subject: fiscal policy ; model comparison ; output multipliers ; zero lower bound

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kilponen, Juha ; Pisani, Massimiliano ; Schmidt, Sebastian ; Corbo, Vesna ; Hlédik, Tibor ; Hollmayr, Josef ; Hurtado, Samuel ; Júlio, Paulo ; Kulikov, Dmitry ; Lemoine, Matthieu ; Lozej, Matija ; Lundvall, Henrik ; Maria, José R. ; Micallef, Brian ; Papageorgiou, Dimitris ; Rysanek, Jakub ; Sideris, Dimitris ; Thomas, Carlos ; de Walque, Gregory
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/154193
• Last update: 10.03.2025, 11:46 AM CET