Fiscal Spending Multiplier in Selected European Union Countries

Nikolay Velichkov

Authors

Chief Assist. Prof. Dr Nikolay Velichkov Department of Economics, Faculty of General Economics, UNWE Author https://orcid.org/0000-0001-6368-0507 (unauthenticated)

Keywords:

Fiscal multiplier, Business cycle, Trade openness, Exchange rate regime, Fiscal sustainability

E32, E62, H50

Abstract

This paper estimates the fiscal spending multiplier in Bulgaria, Poland, Romania, Estonia, Denmark, Germany, Greece, and Italy for the 2000-2018 period. It is calculated by algebraically transforming the traditional Keynesian multiplier formula. In addition, the formula is subjected to further modification to take into account the impact of various structural and conjunctural factors, such as business cycle, trade openness, exchange rate regime, and fiscal sustainability, which all have an impact on the multiplier effect.

References

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