Series: IMF Working Papers
Author(s): Adalgiso Amendola , Mario di Serio , Matteo Fragetta , and Giovanni Melina
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 28 June 2019
Keywords: Government expenditures, Negative interest rates, Real interest rates, Interest rate policy, Business cycles, Fiscal multiplier, Zero lower bound, Panel VAR, Factor models, Euro Area.
We build a factor-augmented interacted panel vector-autoregressive model of the Euro Area (EA) and estimate it with Bayesian methods to compute government spending multipliers. The multipliers are contingent on the...