In this paper, we propose a time-varying parameter VAR model with stochastic volatility which allows for estimation on … output in Italy. The fiscal multiplier, which is maximized at the one year horizon, follows a U-shape over the sample …

allows for estimation on data sampled at different frequencies. Our contribution is two-fold. First, we extend the … tend to have positive effects on output in Italy. The fiscal multiplier, which is maximized at the one year horizon …

estimated stimulus is extremely small with GDP and employment effects only onesixth as large. -- Fiscal multiplier ; New …

-run multipliers around 0.52 and modestly negative long-run multipliers around -0.42. The multiplier is sensitive to the fraction of …. -- Fiscal Stimulus ; New Keynesian model ; liquidity trap ; zero lower bound ; fiscal multiplier … modestly negative long-run multipliers around -0.42. The multiplier is sensitive to the fraction of transfers given to credit …

multiplier far below one. However, the stimulus ́multiplier strongly depends on the assumed monetary policy response. Based on …

endogenous model 36 1.3.4 Fiscal restrictions and estimation of the restricted models … series properties and estimation 77 2.5.3 Estimation results … 85 2.A Results of comprehensive estimation approach 85 2.B Additional plots of …