What fiscal policy is most effective? A Meta Regression Analysis

Arbeitspapier

We apply meta regression analysis to a unique data set of 104 studies on multiplier effects with 1069 reported multipliers in order to derive stylized facts and to quantify the differing effectiveness of the composition of fiscal impulses, adjusted for the interference of study-design characteristics and sample specifics. As a major result, we find that public spending multipliers are close to one and about 0.3 to 0.4 units larger than tax and transfer multipliers. Public investment multipliers are even larger by approximately 0.5 units. Reported multipliers vary with study-design, thus, policy consulting based on a certain multiplier study should lay open by how much specification affects the results. Our meta analysis provides guidance concerning influential factors, their sign and magnitude.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IMK Working Paper ; No. 117

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption, Saving, Production, Employment, and Investment: Forecasting and Simulation: Models and Applications ; Fiscal Policy ; Fiscal Policies and Behavior of Economic Agents: General
• Subject: multiplier effects ; fiscal policy ; meta analysis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gechert, Sebastian
• Event: Veröffentlichung
• (who): Hans-Böckler-Stiftung, Institut für Makroökonomie und Konjunkturforschung (IMK)
• (where): Düsseldorf
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/105983
• URN: urn:nbn:de:101:1-201403119027
• Last update: 10.03.2025, 11:43 AM CET