dc.contributor.author | Carmignani, Fabrizio | |
dc.contributor.editor | Rohde, Nicholas | |
dc.contributor.editor | Naranpanawa, Athula | |
dc.date.accessioned | 2020-01-16T08:02:19Z | |
dc.date.available | 2020-01-16T08:02:19Z | |
dc.date.issued | 2014 | |
dc.identifier.issn | 1837-7750 | |
dc.identifier.other | RePEc:gri:epaper:economics:201408 | |
dc.identifier.uri | http://hdl.handle.net/10072/390365 | |
dc.description.abstract | The 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.extent | 14 pages | |
dc.language | English | |
dc.publisher | Griffith University | |
dc.publisher.place | Brisbane, Australia | |
dc.relation.ispartofpagefrom | 1 | |
dc.relation.ispartofpageto | 14 | |
dc.subject.keywords | E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy | |
dc.subject.keywords | C32 - Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models | |
dc.subject.keywords | C54 - Quantitative Policy Modeling | |
dc.subject.keywords | E62 - Fiscal Policy | |
dc.subject.keywords | fiscal multiplier | |
dc.subject.keywords | SVAR | |
dc.subject.keywords | Australia | |
dc.subject.keywords | GFC | |
dc.title | 2014-08: Does Government Expenditure Multiply Output and Employment in Australia? (Working paper) | |
dc.type | Report | |
dc.type.description | Discussion Paper | |
gro.faculty | Griffith Business School | |
gro.description.notepublic | Economics and Business Statistics | |
gro.rights.copyright | Copyright © 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.issued | 2014 | |
gro.hasfulltext | Full Text | |
gro.griffith.author | Carmignani, Fabrizio | |