The aim of this paper is to estimate government consumption multiplier and to examine the effect of various … characteristics of countries on the size of fiscal multiplier. We apply a panel VAR model following Ilzetzki et al. (2013) for a … multiplier is larger than unity. Second, the size of fiscal multiplier is larger in the cases of lower public indebtedness, for …

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 …