48th International Scientific Conference 2017

CONTEMPORARY APPROACHES IN THE ANALYSIS OF ECONOMIC PERFORMANCES

EMPIRICAL EVALUATION OF THE FISCAL MULTIPLIERS

, ,

Abstract:  The economic crisis that happened in 2008 has created the need for the detailed examination of the particular elements of fiscal policy and quantification of their impact. Due to the consequences of the crisis, all components of consumption have considerably decreased, thus making the issue of their impact on the level of domestic product significant to examine. The fiscal multiplier shows the ratio of a change in gross domestic product (GDP) that appeared as a result of changes in public consumption. Many factors impact the level of fiscal multipliers, such as the size and openness of economy, country’s development level, exchange rate regime, monetary policy, structure of fiscal stimulus, country’s indebtedness, credit rating, etc. With regard to the combination of these factors as well as the chosen methodology and the country in question, the assessments of values of fiscal multipliers range from negative (in small and open economies, highly indebted economies, which apply flexible exchange rate policy) to relatively high values (characteristic for well-developed countries, with the implementation of accommodating monetary policy).

Keywords:  fiscal policy, fiscal multipliers, economic growth, cyclic oscillations of economy

Published:   p. 185-195   PDF

ISC-2017



Faculty of Economics

Faculty of Economics Address:
Trg kralja Aleksandra Ujedinitelja 11
18000 Nish, Serbia
 
phones:fax:
+381 18 528 601+381 18 45 23 859
+381 18 528 689+381 18 45 23 268
 
email:  ekonomski(at)eknfak.ni.ac.rs
web: