Fiscal multipliers in advanced and developing countries: Evidence from military spending

Fiscal Spending Jobs Multipliers: Evidence from the 2009 American Recovery and Reinvestment Act

This paper estimates the “jobs multiplier” of fiscal spending using the state-level allocations of federal stimulus funds from the 2009 American Recovery and Reinvestment Act (ARRA). Specifically, I estimate the relationship between state-level federal ARRA spending and the change in states’ employment outcomes from the time the Act was passed (February 2009) to some later month (through June 2...

Government Spending Multipliers under Zero Lower Bound: Evidence from Japan∗

Using a rich data set on government spending forecasts, we estimate the effects of unexpected government spending both when the nominal interest rate is near zero lower bound (ZLB) and outside of ZLB period in Japan. The output multiplier is 1.5 on impact in the ZLB period while it is 0.7 outside of the ZLB period. We argue that this result is not driven by the amount of slack in the economy. W...

Fiscal Impact of Privatization in Developing Countries

Macroeconomics of fiscal policy in developing countries

This paper considers some aspects of the effects of fiscal policy on macroeconomic adjustment in developing countries. First, the paper reviews the notion of the fiscal deficit in the particular context of developing countries. It then spells out the conditions under which the internal and external debts are sustainable and points out the role of the “twin deficits”. The paper then presents som...

The Demand for Military Spending in Developing Countries: a Dynamic Panel Analysis*

* An earlier version of this paper was presented to the Second CesA/IDN International Conference on Defence Economics and Security in Mediterranean and Sub-Saharan Africa, Lisbon, June 2002. We are grateful to the participants for comments. Dunne is grateful to the ESRC for support under grant R00239388. † E-mail: [email protected] ‡ Corresponding author. E-mail: [email protected] TH...