So alike, yet so different: comparing fiscal multipliers across E(M)U candidates
We estimate, following a Panel Vector Auto-regressive methodology, the fiscal multipliers of the E(M)U members and candidates. We perform our analysis on four groups of European countries, focusing specifically on EU candidates as Albania, Macedonia, Serbia and Turkey. Our results suggest that, in the short run, the EU candidates exhibit the highest values of their spending multipliers. Being an EU member seems to affect in particular the spending multiplier. Tax multipliers are stable within all groups of countries, and do not seem to be affected by the EU membership of the analysed countries. Furthermore, we use an Interacted P-VAR taking into account all countries and obtain similar results.
|Author:||Nicolae-Bogdan Ianc and Camelia Turcu|
|No. of pages:||35|
|Category:||INFER working papers|