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The "true" size of fiscal multipliers is widely debated by economists and policy makers as large (small) multipliers provide arguments to expand (cut) public spending. Within a meta-analytical framework, we ask whether the large observed variance in multiplier estimates can be explained by the...
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politicians generates a procyclical bias in government spending. The introduction of fiscal transparency generates two new … redictions: 1) the procyclical bias in fiscal policy arises only in good times; and 2) a higher degree of fiscal transparency … reduces the bias in good times. We find solid empirical support for both predictions using data on both OECD countries and a …
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