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 …

exogenous factors. The tax-cut multiplier varies between 0.2 and 0.5, while the spending multiplier ranges between 0.2 and 1 ….1; the spending multiplier tends to be larger than the tax-cut multiplier over the past two decades …

linear benchmark SVAR, the analysis finds that hiking spending yields a short-term fiscal multiplier of around 0.70, while … the fiscal multiplier resulting from an increase in taxes and social security contributions is -0.66. In addition, the …

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 …

, this letter points out a downward bias in the estimation of Chinese government spending multiplier using the classical lag … spending change in the first month of each quarter as an instrument. The estimation results show that the Chinese government … significantly reacts to output shock counter-cyclically within a quarter, with the resulting government spending multiplier being 0 …