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Europa | Buy Guns or Buy Roses?: Multiplicadores fiscales del gasto en defensa de la UE
[Europe | Buy Guns or Buy Roses?: EU Defence Spending Fiscal Multipliers]

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  • David Sarasa Flores

Abstract

Este documento ofrece la primera estimación completa del multiplicador fiscal dinámico del gasto en defensa para la UE-27, mediante la explotación de gasto públicos exógeno en defensa y empleando métodos de proyección local lineales y no lineales. This paper delivers the first comprehensive estimate of the dynamic fiscal multiplier of defence spending for the EU-27 by exploiting exogenous accrual-based government defence outlays and a combination of linear and non-linear Local Projection methods.

Suggested Citation

  • David Sarasa Flores, 2025. "Europa | Buy Guns or Buy Roses?: Multiplicadores fiscales del gasto en defensa de la UE [Europe | Buy Guns or Buy Roses?: EU Defence Spending Fiscal Multipliers]," Working Papers 25/06, BBVA Bank, Economic Research Department.
    • Handle: RePEc:bbv:wpaper:2506
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    References listed on IDEAS

    as
    1. Valerie A. Ramey & Sarah Zubairy, 2018. "Government Spending Multipliers in Good Times and in Bad: Evidence from US Historical Data," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 850-901.
    2. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1329-1368.
    3. Robert E. Hall, 2009. "By How Much Does GDP Rise If the Government Buys More Output?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(2 (Fall)), pages 183-249.
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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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