State dependence of fiscal multipliers in Chile
An independent component approach to identification
DOI:
https://doi.org/10.47872/laer.v32.130Keywords:
Threshold vector autoregressions, generalized impulse response, independent components, fiscal multiplierAbstract
In studying the economic cycle dependency of fiscal multipliers in Chile, we implement an independent component analysis for structural shock identification within a non-linear vector autoregressive setting with generalized impulse response functions. Thereby we relax more restrictive assumptions adopted in previous studies, namely the a-priori assumption of a recursive model structure and the use of linear impulse response functions. As a result, we cannot fully confirm core insights from more restrictive structural models: we find no significant differences in neither government spending nor government revenues multipliers when comparing different states of the economy. Moreover, our estimates imply that fiscal multipliers in Chile do not differ significantly from zero.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Andres Fortunato, Helmut Herwartz
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
LAER Copyright and License
Authors submitting articles to Latin American Economic Review (LAER), automatically grant this journal a license to publish. Copyright of all published material remains with the authors, who can reuse it in future work without needing to make reference to LAER. Similarly, any other contribution of material to the website (for example text, photographs, graphics, video or audio) automatically grants us a right to publish. Copyright, however, remains with the author(s).
Authors release their work under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0). This license allows anyone to copy, distribute and transmit the work, provided the use has no derivatives, is non-commercial and appropriate credit to the author(s) is given. (If you remix, transform, or build upon the material, you may not distribute the modified material.)
A human-readable summary of the licence:
https://creativecommons.org/licenses/by-nc-nd/4.0/
Full legal text: