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Italian local fiscal multipliers: Evidence from proxy-SVAR

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  • Matarrese, Marco Maria
  • Frangiamore, Francesco

Abstract

In this letter, we use the Proxy-SVAR approach to investigate fiscal multipliers in Italy. We also estimate distinct multipliers for the Centre-North and the South. Our findings are consistent with the Keynesian view that advocates positive government spending multipliers and point at higher multipliers in the Centre-North.

Suggested Citation

  • Matarrese, Marco Maria & Frangiamore, Francesco, 2023. "Italian local fiscal multipliers: Evidence from proxy-SVAR," Economics Letters, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:ecolet:v:228:y:2023:i:c:s0165176523002100
    DOI: 10.1016/j.econlet.2023.111185
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    More about this item

    Keywords

    Proxy-SVAR; Fiscal policy; Multipliers; Fiscal foresight;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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