Fiscal Spillovers and Trade Relations in Europe
AbstractThis paper explores the impact of openness, as measured by import penetration, on the size and duration of fiscal multipliers and spillovers across European Union members. The analysis is embedded in a macroeconomic model, NiGEM, to capture structural differences across countries, time and policy regimes. Panel estimation with PMG and CCE techniques is used to estimate trade relations. Our analysis indicates that fiscal multipliers and spillovers depend crucially on structural assumptions about policy and the formation of expectations. Fiscal policy has limited effects on the economies of Europe, and that the case for fiscal policy coordination is weak except in the short run. The case for coordination rests on spillovers which are likely to become ever smaller as financially liberalisation continues.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 289.
Date of creation: Mar 2007
Date of revision:
Contact details of provider:
Postal: 2 Dean Trench Street Smith Square London SW1P 3HE
Web page: http://niesr.ac.uk
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Arjan Lejour & Hugo Rojas-Romagosa, 2008. "International spillovers of domestic reforms: the joint application of the Lisbon Strategy in the EU," CPB Discussion Paper 105, CPB Netherlands Bureau for Economic Policy Analysis.
- Ray Barrell & Dawn Holland & Iana Liadze & Olga Pomerantz, 2009. "Volatility, growth and cycles," Empirica, Springer, vol. 36(2), pages 177-192, May.
- Ray Barrell & Sylvia Gottschalk & Dawn Holland & Ehsan Khoman & Iana Liadze & Olga Pomerantz, 2008. "The impact of EMU on growth and employment," European Economy - Economic Papers 318, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Communications Manager).
If references are entirely missing, you can add them using this form.