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dc.contributor.authorCarmignani, Fabrizio
dc.contributor.editorRohde, Nicholas
dc.contributor.editorNaranpanawa, Athula
dc.date.accessioned2020-01-16T08:02:19Z
dc.date.available2020-01-16T08:02:19Z
dc.date.issued2014
dc.identifier.issn1837-7750
dc.identifier.otherRePEc:gri:epaper:economics:201408
dc.identifier.urihttp://hdl.handle.net/10072/390365
dc.description.abstractThe debate on the use of fiscal policy as a tool of macroeconomic stabilization is quite vehement in Australia and abroad. This paper contributes to the discussion by estimating the response of Australian GDP and employment to government consumption shocks. Using a SVAR approach, the paper produces three key findings: (i) the cumulative government expenditure multiplier is greater than one, (ii) full time employment positively responds to a spending stimulus, and (iii) the multiplying effect of government expenditure has somewhat weakened after the Global Financial Crisis. The central policy implication is that counter-cyclical fiscal policy is an effective stabilization tool in Australia. In this regard, the fiscal stimulus of the Australian government in 2008-09 helped shield the economy from the effects of the GFC. However, a counter-cyclical pattern would have required a more significant reversal of this stimulus in the post-GFC phase.
dc.format.extent14 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto14
dc.subject.keywordsE63 - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
dc.subject.keywordsC32 - Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
dc.subject.keywordsC54 - Quantitative Policy Modeling
dc.subject.keywordsE62 - Fiscal Policy
dc.subject.keywordsfiscal multiplier
dc.subject.keywordsSVAR
dc.subject.keywordsAustralia
dc.subject.keywordsGFC
dc.title2014-08: Does Government Expenditure Multiply Output and Employment in Australia? (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicEconomics and Business Statistics
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2014
gro.hasfulltextFull Text
gro.griffith.authorCarmignani, Fabrizio


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