This paper examines issues related to the estimation of the government spending multiplier (GSM) in a Dynamic …

The existing literature on fiscal policy has mainly employed linear models that found a small fiscal multiplier in …, linear models are not capable of distinguishing the size of the fiscal multiplier in di↵erent phases of economic cycles …. Responding to the previous studies that confirm regime dependency of a fiscal multiplier, our model enriches the literature of …

The existing literature on fiscal policy has mainly employed linear models that found a small fiscal multiplier in …, linear models are not capable of distinguishing the size of the fiscal multiplier in different phases of economic cycles …. Responding to some recent studies that confirm regime dependency of a fiscal multiplier, our model enriches the literature of …

We estimate the average fiscal multiplier, allowing multipliers to be heterogeneous across countries or over time and … conventional multiplier estimates. We rely on both crosssectional and time-series variation in spending shocks, exploiting the … differential effects of oil price shocks on fuel subsidies, to identify the average government spending multiplier. Our estimates …

tend to have positive effects on output in Italy. The fiscal multiplier, which is maximized at the one year horizon …