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The Effectiveness of Fiscal Policy in Stimulating Economic Activity--A Review of the Literature Author info | Abstract | Publisher info | Download info | Related research | Statistics Selma Mahfouz
Richard Hemming
Michael Kell
This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
02/208.
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Length: 52 pages
Date of creation: 16 Dec 2002Date of revision:
Handle: RePEc:imf:imfwpa:02/208Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Fiscal policy ; Economic growth ; Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Chirinko, Robert S, 1993.
"Business Fixed Investment Spending: Modeling Strategies, Empirical Results, and Policy Implications ,"
Journal of Economic Literature ,
American Economic Association, vol. 31(4), pages 1875-1911, December.
[Downloadable!] (restricted)
Rosenswieg, Jeffrey A & Tallman, Ellis W, 1993.
"Fiscal Policy and Trade Adjustment: Are the Deficits Really Twins? ,"
Economic Inquiry ,
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Other versions: Zhaohui Chen & Alberto Giovannini, 1993.
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NBER Working Papers
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Chen, Zhaohui & Giovannini, Alberto, 1993.
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CEPR Discussion Papers
790, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Eckhard Hein & Achim Truger, 2008.
"Fiscal policy in the macroeconomic policy mix: A Critique of the New Consensus Model and a comparison of macroeconomic policies in France, Germany, the UK and Sweden from a Post-Keynesian perspective ,"
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03-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
[Downloadable!]
Canale, R.R., 2008.
"Central bank reaction to public deficit and sound public finance: the case of the European Monetary Union ,"
MPRA Paper
8789, University Library of Munich, Germany.
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Torben Andersen, 2005.
"Is there a Role for an Active Fiscal Stabilization Policy? ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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Guglielmo Maria Caporale & Davide Ciferri & Alessandro Girardi, 2008.
"Fiscal Shocks and Real Exchange Rate Dynamics: Some Evidence for Latin America ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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António Afonso & Davide Furceri, 2008.
"Government size, composition, volatility and economic growth ,"
Working Paper Series
849, European Central Bank.
[Downloadable!]
Other versions: Martin Petri & Tahsin Saadi-Sedik, 2006.
"To Smooth or Not to Smooth - The Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan ,"
IMF Working Papers
06/257, International Monetary Fund.
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Agnes Benassy-Quere, 2006.
"Short-Term Fiscal Spillovers in a Monetary Union ,"
Working Papers
2006-13, CEPII research center.
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Hauptmeier, Sebastian & Heipertz, Martin & Schuknecht, Ludger, 2006.
"Expenditure reform in industralised countries : a case study approach ,"
ZEW Discussion Papers
06-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
Other versions: Pagiola, Stefano & Bosquet, Benoit, 2009.
"Estimating the costs of REDD at the country level ,"
MPRA Paper
13726, University Library of Munich, Germany, revised 22 Sep 2009.
[Downloadable!]
Juha Tervala, 2007.
"Fiscal Policy and the Current Account in a Small Open Economy ,"
Finnish Economic Papers ,
Finnish Economic Association, vol. 20(2), pages 108-120, Autumn.
[Downloadable!]
Alena Kimakova, 2006.
"Does globalization enhance the role of fiscal policy in economic stabilization? ,"
Economics Bulletin ,
Economics Bulletin, vol. 8(11), pages 1-11.
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Alfredo Schclarek, 2004.
"Consumption and Keynesian Fiscal Policy ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Ben J. Heijdra & Jenny Ligthart, 2006.
"Fiscal Policy, Monopolistic Competition, and Finite Lives ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions:
Heijdra, Ben J. & Ligthart, Jenny E., 2005.
"Fiscal policy, monopolistic competition, and finite lives ,"
Discussion Paper
126, Tilburg University, Center for Economic Research.
[Downloadable!] Heijdra, Ben J. & Ligthart, Jenny E., 2007.
"Fiscal policy, monopolistic competition, and finite lives ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 31(1), pages 325-359, January.
[Downloadable!] (restricted) Maria Neicheva, 2006.
"Non-Keynesian Effects of Government Expenditure on Output in Bulgaria: An HP Filter Approach ,"
Post-Communist Economies ,
Taylor and Francis Journals, vol. 18(1), pages 1-12, March.
[Downloadable!] (restricted)
Rosaria Rita Canale & Pasquale Foresti & Ugo Marani & Oreste Napolitano, 2007.
"On Keynesian effects of (apparent) non-Keynesian fiscal policies ,"
Discussion Papers
8_2007, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
[Downloadable!]
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