Arbeitspapier
Fiscal policy multipliers and spillovers in a multi-regional macroeconomic input-output model
The recent macroeconomic literature dealing with fiscal policy multipliers is dominated by applications of aggregate DSGE (Dynamic Stochastic General Equilibrium) models, whereas multi-sectoral models (econometric input-output or CGE) are absent. This paper contributes to the debate from a multiregional, multi-sectoral perspective. The macroeconomic input-output model applied covers 67 countries (plus a statistical rest of world) and incorporates model blocks for private consumption, production, the labour market and the public sector. Household consumption follows the permanent income hypothesis, but with important liquidity constraints. This study calculates macroeconomic and sectoral impacts of fiscal policy in one peripheral EU economy (Spain) as well as their inter-regional spillovers to the rest of Europe. Multipliers are about 1.9 for public consumption and 1.2 for household taxes or transfers in the case of high liquidity constraints (1.6 and 0.9, respectively, for low liquidity constraints). Partially endogenous public spending produces additional domestic effects as well as relatively large spillovers for some highly indebted European countries.
- Language
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Englisch
- Bibliographic citation
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Series: WIFO Working Papers ; No. 540
- Classification
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Wirtschaft
Quantitative Policy Modeling
Input-Output Models
National Budget, Deficit, and Debt: General
- Subject
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Input-output modelling
fiscal policy multiplier
consumption theory
- Event
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Geistige Schöpfung
- (who)
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Kratena, Kurt
Streicher, Gerhard
- Event
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Veröffentlichung
- (who)
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Austrian Institute of Economic Research (WIFO)
- (where)
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Vienna
- (when)
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2017
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kratena, Kurt
- Streicher, Gerhard
- Austrian Institute of Economic Research (WIFO)
Time of origin
- 2017
Other Objects (12)
Data input/output
Input-Output OOMs
Relations Input-Output
On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers
Output and Employment Input-Output Multipliers on the basis of Use and Make Matrices
Input-Output Methods in Forecasting
What is input output logic? : input/output logic, constraints, permissions
HYBRID INTERREGIONAL INPUT-OUTPUT CONSTRUCTION METHODS: APPLIED TO THE SEVEN REGION SPANISH INPUT-OUTPUT TABLE
Income differences and input-output structure
Metropolitan Multiregional Input-Output Modelling Framework
Technology-intensive industries - Input-output analysis
Technology adoption in input-output networks
Data input/output
Input-Output OOMs
Relations Input-Output
On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers
Output and Employment Input-Output Multipliers on the basis of Use and Make Matrices
Input-Output Methods in Forecasting
What is input output logic? : input/output logic, constraints, permissions
HYBRID INTERREGIONAL INPUT-OUTPUT CONSTRUCTION METHODS: APPLIED TO THE SEVEN REGION SPANISH INPUT-OUTPUT TABLE
Income differences and input-output structure
Metropolitan Multiregional Input-Output Modelling Framework
Technology-intensive industries - Input-output analysis
Technology adoption in input-output networks
Data input/output
Input-Output OOMs
Relations Input-Output
On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers
Output and Employment Input-Output Multipliers on the basis of Use and Make Matrices
Input-Output Methods in Forecasting
What is input output logic? : input/output logic, constraints, permissions
HYBRID INTERREGIONAL INPUT-OUTPUT CONSTRUCTION METHODS: APPLIED TO THE SEVEN REGION SPANISH INPUT-OUTPUT TABLE
Income differences and input-output structure
Metropolitan Multiregional Input-Output Modelling Framework
Technology-intensive industries - Input-output analysis