Fiscal multipliers and structural economic characteristics
Evidence from countries in sub‐Saharan Africa
Bibliographic Data
| ID | 21543083 |
|---|---|
| Authors | Gabriel Temesgen Woldu (0000-0003-4092-4286, Faculty of Economics and Business Administration, Doctoral School of Economics University of Szeged Szeged Hungary, corresponding author), Izabella Szakálné Kanó (0000-0002-4149-1243, Institute of Economics and Economic Development, Theoretical Economics Section University of Szeged Szeged Hungary) |
| Year | 2023 |
| Volume | 46 |
| Issue | 8 |
| Pages | 2335-2360 |
| Publication date | 2023-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Economy (JOURNAL) |
| Journal identifiers | ISSN: 0378-5920 • E-ISSN: 1467-9701 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/twec.13405 |
| OpenAlex | W4361291514 |
| Language | EN |
| Citations received | 2 |
| References cited | 52 |
Output response to discretionary fiscal policy is a key aspect of examining various theories, findings of empirical studies and delivering guidance to policymakers. This study analyses the output response to unanticipated fiscal spending shocks under several structural economic characteristic factors, including business cycle states, debt burden, openness of the economy, exchange rate regimes and political governance regime, using annual data from 40 countries in SSA spanning from 2000 to 2019 in a panel threshold vector auto‐regression model. The findings indicate that fiscal spending multipliers have much larger effects on output in times of recession, in economies operating under lower trade openness, a fixed exchange rate, low‐debt burden, restricted capital mobility, less financial development and a democratic governance regime. Based on the results, the discretionary countercyclical fiscal policy and optimal fiscal policy action are recommended. Moreover, in order to have effective fiscal policy must target hand‐to‐mouth consumers (non‐Ricardian consumers) and firms with limited liquidity, concentrating on social services and social protection to increase short‐term demand. Likewise, A proper fiscal monetary policy mix should be considered with other structural measures to maximising the positive effects of the fiscal expansion
Business cycle · Debt · Economics · Exchange rate · Fiscal policy · Government spending · Macroeconomics · Market liquidity · Monetary economics · Openness to experience · Recession · Welfare · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
Estimation and Inference of Impulse Responses by Local Projections
An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output
Second-Best Institutions
How big (small?) are fiscal multipliers?
What are the effects of fiscal policy shocks?
Understanding the Effects of Government Spending on Consumption
Shocks and Frictions in US Business Cycles
Macroeconomic Effects From Government Purchases and Taxes
General Diagnostic Tests for Cross Section Dependence in Panels
The Colonial Origins of Comparative Development
A simple panel unit root test in the presence of cross‐section dependence
Government spending effects in low-income countries
The Effects of Government Purchases Shocks
Government Spending Multipliers in Good Times and in Bad
Identifying Government Spending Shocks
| Unique citing works | 2 |
|---|---|
| Citations per year | 2 |
| Citation span | 2025 - 2025 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |