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Estimación de multiplicadores fiscales para Nicaragua con datos trimestrales de 2006 a 2018
[Estimation of fiscal multipliers for Nicaragua with quarterly data from 2006 to 2018]

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  • Membreño, Luis
  • López, Jennifer
  • Jiménez, Kenneth

Abstract

In the present study, we estimate the symmetric and asymmetric multipliers of expenditure and income for Nicaragua. For the symmetric model we used the Structural Vector Autoregressive (SVAR) to identify the fiscal multipliers on the product, consumption and investment. For the asymmetric model we used the local projections approach. The results of the linear model found that spending and income multipliers of the Central Government are less than one Córdoba for GDP, consumption and private investment. Likewise, the results suggest that capital spending has a greater effect on the product. Regarding to the non-linear model, a slight asymmetry was evidenced in the spending multipliers while the income multiplier was always negative no matter the state of the economy.

Suggested Citation

  • Membreño, Luis & López, Jennifer & Jiménez, Kenneth, 2020. "Estimación de multiplicadores fiscales para Nicaragua con datos trimestrales de 2006 a 2018 [Estimation of fiscal multipliers for Nicaragua with quarterly data from 2006 to 2018]," MPRA Paper 105132, University Library of Munich, Germany, revised 30 Dec 2020.
    • Handle: RePEc:pra:mprapa:105132
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    References listed on IDEAS

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    More about this item

    Keywords

    Fiscal policy; fiscal multipliers; asymmetry; autoregressive structural vector; local projections.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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