Fiscal multipliers in a small open economy: the case of Austria

ČAPEK, Jan, Jesús CRESPO CUARESMA, Johannes HOLLER and Philip SCHUSTER. Fiscal multipliers in a small open economy: the case of Austria. OXFORD ECONOMIC PAPERS-NEW SERIES. Oxford: Oxford University Press, 2022, vol. 74, No 2, p. 412-430. ISSN 0030-7653. Available from: https://dx.doi.org/10.1093/oep/gpab027.

Basic information

• Original name: Fiscal multipliers in a small open economy: the case of Austria
• Authors: ČAPEK, Jan (203 Czech Republic, guarantor, belonging to the institution), Jesús CRESPO CUARESMA (724 Spain, belonging to the institution), Johannes HOLLER (40 Austria) and Philip SCHUSTER (40 Austria).
• Edition: OXFORD ECONOMIC PAPERS-NEW SERIES, Oxford, Oxford University Press, 2022, 0030-7653.

Other information

• Original language: English
• Type of outcome: Article in a journal
• Field of Study: 50202 Applied Economics, Econometrics
• Country of publisher: United Kingdom of Great Britain and Northern Ireland
• Confidentiality degree: is not subject to a state or trade secret
• WWW: URL
• Impact factor: Impact factor: 1.200
• RIV identification code: RIV/00216224:14560/22:00119117
• Organization unit: Faculty of Economics and Administration
• Doi: http://dx.doi.org/10.1093/oep/gpab027
• UT WoS: 000764498700001
• Keywords in English: fiscal multiplier;small open economy;SVAR;FAVAR;Austria
• Tags: International impact, Reviewed

Abstract

We estimate fiscal multipliers for Austria in a framework of model uncertainty emanating from the choice of a particular econometric model. We present a comprehensive framework that allows to assess the effects of different multiplier definitions and choices related to the data, the model employed, and further technical choices associated with the specification of the model exert on fiscal multiplier estimates. The mean present-value government spending multiplier over all models entertained, based on around 3,000 estimates, is 0.68. Estimates of the peak spending multiplier for Austria tend to be larger than present-value spending multipliers, with a mean value of 0.85. The magnitude of the present-value tax multiplier is relatively high, with an average value across specifications of −1.12 and the mean peak tax multiplier is −0.54 for all specifications used.

Links

• GA17-14263S, research and development project: Name: Dynamické průměrování předpovědí makroekonomických modelů

Investor: Czech Science Foundation