Long-Run Fiscal Multiplier for Autonomous Prefectures in China
AbstractWe overcome the problems of data availability and investigate the fiscal multipliers in autonomous prefectures in China. We first estimate the long-run elasticity of gross regional production with respect to fiscal expenditure in autonomous prefectures, using autoregressive distributed lag models. The estimated long-run elasticity is much less than unity, however, and the estimated fiscal multipliers for prefectures are between 0.61 and 4.93, with an average of 1.93. These results indicate that additional fiscal expenditure is still effective in increasing local income and promoting economic growth for most of the autonomous prefectures.
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Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 13-10.
Length: 15 pages
Date of creation: Jun 2013
Date of revision:
Fiscal Multiplier; Autonomous Prefecture; China; autoregressive distributed lag model;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-30 (All new papers)
- NEP-CWA-2013-06-30 (Central & Western Asia)
- NEP-DEV-2013-06-30 (Development)
- NEP-FDG-2013-06-30 (Financial Development & Growth)
- NEP-PBE-2013-06-30 (Public Economics)
- NEP-TRA-2013-06-30 (Transition Economics)
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