Countries' structural characteristics and the magnitude of fiscal shock

Senekovič, Marko

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Title:	Countries' structural characteristics and the magnitude of fiscal shock
Authors:	ID Senekovič, Marko (Author)
Files:	https://journals.um.si/index.php/oe/article/view/5051 https://journals.um.si/index.php/oe/article/view/5051 https://journals.um.si/index.php/oe/article/view/5051 This document has even more files. Complete list of files is available below.
Language:	English
Work type:	Scientific work
Typology:	1.01 - Original Scientific Article
Organization:	EPF - Faculty of Business and Economics
Abstract:	The transmission channels of stabilizing fiscal policy remain partially unexplored, which presents a challenge for the effective management of economic policy. Using a broad dataset and vector autoregression methodology, this paper examines the relationship between selected structural characteristics of economies and the magnitude of fiscal multipliers. The results indicate that fiscal multipliers tend to be smaller in more developed economies, in business-friendly environments, and in EU and EMU member states. Additionally, findings on public and private debt, as well as savings levels, suggest that fiscal multipliers are higher in countries where a larger share of economic agents faces liquidity constraints. Consequently, increased public spending, driven by households' higher marginal propensity to consume, produces a stronger impact on output through the multiplier effect. Our results provide a foundation for fiscal policymakers to design appropriate measures tailored to the specific characteristics of individual economies, aiming to enhance the effectiveness of stabilization policies. Consequently, fiscal stimulus can achieve a greater impact while ensuring the efficient allocation of taxpayer resources.
Keywords:	fiscal multiplier, structural determinants, wealth inequality, VAR
Publication status:	Published
Publication version:	Version of Record
Publication date:	01.04.2025
Year of publishing:	2025
Number of pages:	str. 1-11
Numbering:	Vol. 71, no. 1
PID:	20.500.12556/DKUM-92960-a2ecb918-1dd2-2ccc-9009-e8fd90de0f08
UDC:	336.74:338.2
ISSN on article:	0547-3101
COBISS.SI-ID:	233411587
DOI:	10.2478/ngoe-2025-0001
Publication date in DKUM:	28.05.2025
Views:	163
Downloads:	12
Metadata:
Categories:	Misc.
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Record is a part of a journal

Title:	Naše gospodarstvo : revija za aktualna gospodarska vprašanja
Shortened title:	Naše gospod.
Publisher:	Ekonomsko-poslovna fakulteta, Društvo ekonomistov Maribor, Ekonomski center Maribor
ISSN:	0547-3101
COBISS.SI-ID:	751364

Licences

License:	CC BY 4.0, Creative Commons Attribution 4.0 International

Link:	http://creativecommons.org/licenses/by/4.0/
Description:	This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Secondary language

Language:	Slovenian
Title:	Strukturne karakteristike držav in velikost multiplikatorja vladne potrošnje
Abstract:	Transmisijski kanali stabilizacijske fiskalne politike še ostajajo delno neraziskani, kar predstavlja izziv za učinkovito vodenje ekonomske politike. Ta študija z uporabo obsežne podatkovnega niza in metodologijo vektorske avtoregresije analizira razmerje med izbranimi strukturnimi značilnostmi gospodarstev in velikostjo fiskalnih multiplikatorjev. Rezultati kažejo, da so fiskalni multiplikatorji praviloma manjši v bolj razvitih gospodarstvih, v poslovno prijaznih okoljih ter v državah članicah EU in EMU. Ob tem ugotovitve o javnem in zasebnem dolgu ter ravneh varčevanja nakazujejo, da so fiskalni multiplikatorji višji v državah, kjer se večji delež ekonomskih subjektov sooča z likvidnostnimi omejitvami. Posledično dodatna javna poraba zaradi višje mejne nagnjenosti k potrošnji povzroči močnejši končni učinek na ekonomsko aktivnost. Naši rezultati tako dajejo podlago nosilcem fiskalne politike za oblikovanje ustreznih ukrepov, prilagojenih specifičnim značilnostim posameznih gospodarstev, z namenom po izboljšani učinkovitosti stabilizacijske fiskalne politike. Posledično lahko s sistemom fiskalnih spodbud dosežemo večji učinek ob hkratni učinkoviti rabi davkoplačevalskih sredstev.
Keywords:	fiskalna politika, strukturne determinante, VAR

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Naše gospodarstvo

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