an empirical exercise
Marko Senekovič (Author)

Abstract

Empirical literature explains the heterogeneity of fiscal multiplier estimates through the analysis of various cyclical and structural determinants of economies, with economic inequality, as one of the key structural characteristics, receiving relatively little attention so far. In this study, using a wide sample of countries and applying the vector autoregression methodology, we first estimated fiscal multipliers and the impact of fiscal stimuli on the dynamics of the price level. The findings indicate that the estimated fiscal multipliers are mostly positive, and fiscal stimuli tend to produce an inflationary effect. Subsequently, we examined the variability in the size of fiscal multipliers in relation to various indicators of income and wealth inequality. The key findings of this study reveal that as economic inequality increases, particularly in the context of income disparities, the size of fiscal multipliers also rises. This insight is particularly important for policymakers in designing appropriate fiscal measures in an evolving macroeconomic environment.

Keywords

fiscal multiplier;income inequality;wealth inequality;VAR;

Data

Language: English
Year of publishing:
Typology: 1.01 - Original Scientific Article
Organization: UM EPF - Faculty of Economics and Business
UDC: 330.101.541
COBISS: 231760899 Link will open in a new window
ISSN: 0547-3101
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Downloads: 2
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Other data

Secondary language: Slovenian
Secondary title: Ekonomska neenakost in velikost multiplikatorja državnih izdatkov: empirična analiza
Secondary keywords: fiskalni multiplikator;dohodkovna neenakost;premoženjska neenakost;VAR;
Type (COBISS): Scientific work
Pages: str. 1-11
Volume: ǂVol. ǂ70
Issue: ǂno. ǂ4
Chronology: dec. 2024
DOI: 10.2478/ngoe-2024-0019
ID: 26448772