Fiscal Multipliers in the ECCU
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
The multipliers of taxes, and government consumption and investment expenditure for the Eastern Caribbean Currency Union (ECCU) are estimated using vector autoregression models with panel data. The impact and long-run multipliers are below unity, suggesting that a great extent of the intended impulse ends up expanding imported demand. The long-run multipliers of taxes and consumption expenditure are non-different from zero statistically, while public investment has a long-run multiplier of 0.6. The results suggest that countercyclical policies to stimulate growth should focus on public investment.
Series:
Working Paper No. 2013/117
Subject:
Expenditure Fiscal multipliers Fiscal policy Public investment spending Revenue administration
English
Publication Date:
May 22, 2013
ISBN/ISSN:
9781484359914/1018-5941
Stock No:
WPIEA2013117
Pages:
17
Please address any questions about this title to publications@imf.org