Cover IMF Working Papers
Fiscal Multipliers in the ECCU
Author: Mr. Jesus R Gonzalez-Garcia, Mr. Antonio Lemus, and Mr. Mico Mrkaic
Series:
IMF Working Papers
Volume/Issue:
Volume 2013: Issue 117
Language:
English
Publication Date:
22 May 2013
DOI:
https://doi.org/10.5089/9781484359914.001
ISBN:
9781484359914
ISSN:
1018-5941
Pages:
17
Keywords:
WP; time series; Fiscal Multipliers; Panel VAR; OECS; ECCU; government investment expenditure multiplier; government consumption expenditure; public spending multiplier; fiscal multiplier; investment multiplier; Public investment spending; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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