Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors
This paper uses a novel loan-level dataset covering lending by official creditors to developing country governments to construct an instrument for government spending. These loans typically finance multi-year spending projects, with disbursements linked to the stages of project implementation. The identification strategy exploits the long lags between approval and eventual disbursement of these loans to isolate a predetermined component of public spending associated with past loan approval decisions taken before the realization of contemporaneous shocks. In a large sample of 102 developing countries over the period 1970-2010, the one-year spending multiplier is reasonably-precisely estimated to be around 0.4.
Main Author: | |
---|---|
Format: | Journal Article biblioteca |
Language: | en_US |
Published: |
American Economic Association
2014-10
|
Subjects: | government spending multipliers, fiscal policy, |
Online Access: | http://hdl.handle.net/10986/16313 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|