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Fiscal multipliers in Low-income Sub-Saharan African countries

Author

Listed:
  • Daffeh, Abdou
  • Destefanis, Sergio
  • Di Serio, Mario
  • Fragetta, Matteo

Abstract

This study estimates country-specific government consumption multipliers for 20 Low-Income Countries in Sub-Saharan Africa. Using a Bayesian random effect PVAR model, we find heterogeneous fiscal multipliers. Our results challenge the prevailing idea of limited fiscal stimulus effectiveness in these economies.

Suggested Citation

  • Daffeh, Abdou & Destefanis, Sergio & Di Serio, Mario & Fragetta, Matteo, 2024. "Fiscal multipliers in Low-income Sub-Saharan African countries," Economics Letters, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:ecolet:v:240:y:2024:i:c:s0165176524002544
    DOI: 10.1016/j.econlet.2024.111770
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    References listed on IDEAS

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    More about this item

    Keywords

    Fiscal shocks; SSA multipliers; Bayesian heterogeneous panel threshold var;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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