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The aggregate effects of government income transfer shocks - EU evidence

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  • Susana Párraga Rodríguez

    (University College London)

Abstract

This paper estimates the aggregate effect of government income transfer shocks for a sample of EU countries. The new measure of transfer shocks builds on a dataset by public fi nance experts of the European System of Central Banks (ESCB). The identifi cation strategy consists of a narrative analysis of the old-age pension-related policy actions reported in the ESCB dataset. Increases in old-age pensions are found to have a positive impact on aggregate expenditure components and employment consistent with a multiplier effect of between 0 and 1.

Suggested Citation

  • Susana Párraga Rodríguez, 2016. "The aggregate effects of government income transfer shocks - EU evidence," Working Papers 1629, Banco de España.
    • Handle: RePEc:bde:wpaper:1629
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    More about this item

    Keywords

    transfer payments; public pensions;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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