“…Caldara & Kamps, 2008Perotti, 2004) and the sign restriction (Mountford & Uhlig, 2009). The (S)VAR models or panel VAR models are often used for fiscal multiplier estimation for developing and low-income countries, as well as CEE countries (Baranowski, Krajewski, Mackiewicz, & Szymańska, 2016;Grdović Gnip, 2014;Ilzetzki, Mendoza, & Végh, 2013;Kraay, 2013;Mirdala, 2009). The post-crisis VAR models have been modified to the smooth transition vector autoregressive models (STVAR) (see Auerbach & Gorodnichenko, 2012 for US, Hernández de Cos & Moral-Benito, 2016 for Spain or Benčík, 2014 for CEE countries) or to nonlinear TVAR (threshold VAR) models (Batini, Callegari, & Melina, 2012;Baum et al, 2012;Baum & Koester, 2011;Mittnik & Semmler, 2012).…”