The government spending multiplier: Evidence from county level data

Erickson, Christopher A.; Owusu-Nantwi, Victor; Owensby, Fred

doi:10.1016/j.soscij.2014.09.008

Cited by 2 publications

(1 citation statement)

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“…Therefore, the present study attempts to fill this gap by estimating the fiscal multipliers in India using the dataset of 17 non-special category states with the application of the panel vector autoregression (PVAR) method. There are few international studies by Erickson, Owusu-Nantwi, and Owensby (2015) and Guo, Chang, and Ma (2016), which have dealt with estimation of fiscal multipliers at county level for the USA and China, respectively. In case of India, the present study is the first of its kind in estimating the fiscal multipliers using state-level data.…”

Section: Introductionmentioning

confidence: 99%

The Size of Fiscal Multipliers in India: A State Level Analysis Using Panel Vector Autoregression Model

Mishra

2019

Global Business Review

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This study attempts to measure the fiscal multipliers in India using the state-level panel dataset of 17 non-special category states for the period 2001–2002 to 2013–2014. The study employs the panel vector autoregression (PVAR) approach with a generalized method of moments (GMM) framework and plots the generalized impulse response function to explore shocks and responses of endogenous variables. The article finds that the effects of fiscal variables on income in longer horizon are greater than the immediate impact. Both in the short run and long run, the multiplier effect of capital outlay on income is greater than the multiplier effect of revenue expenditure. The operation of reverse multiplier due to increase in tax is found to be lower than the favourable multiplier effect of expenditure. It provides a rationale for taxation wherein the government should resort to taxation with an objective to spend it on productive investment and thereby raise the economic activity.

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Section: Introductionmentioning

confidence: 99%

The Size of Fiscal Multipliers in India: A State Level Analysis Using Panel Vector Autoregression Model

Mishra

2019

Global Business Review

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What have we Learned about the Effectiveness of Infrastructure Investment as a Fiscal Stimulus? A Literature Review

Vagliasindi¹,

Gorgulu²

2021

Policy Research Working Papers

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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The government spending multiplier: Evidence from county level data

Cited by 2 publications

References 18 publications

The Size of Fiscal Multipliers in India: A State Level Analysis Using Panel Vector Autoregression Model

The Size of Fiscal Multipliers in India: A State Level Analysis Using Panel Vector Autoregression Model

What have we Learned about the Effectiveness of Infrastructure Investment as a Fiscal Stimulus? A Literature Review

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