Naslov
The power of fiscal multipliers in Croatia

Autori
Grdović Gnip, Ana

Izvornik
Financijska teorija i praksa (1332-3970) 38 (2014), 2; 173-219

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
fiscal multiplier; spending shock; tax shock; SVAR; STVAR; Croatia

Sažetak
This paper investigates fiscal multipliers in Croatia in the period 1996Q1-2011Q4. To do so a Blanchard Perotti three variable baseline SVAR is employed as a no regime- switch model, along with a four variable baseline STVAR as a regime-switch model. Results show that during recessions fiscal multipliers in Croatia tend to be much larger and move in line with Keynesian assumptions, i.e. a positive government spending shock increases output, private consumption and private investment, while oppositely a positive tax shock deteriorates the same macroeconomic variables. Moreover, during recession times government spending for purchases of goods and services seem to be the most effective fiscal instrument in boosting economic activity.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
Project: „Tax Policy and Fiscal Consolidation in Croatia [8174]" Croatian Science Foundation ; number   IP-2013-11-8174

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