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Jorge Restrepo
This paper uses the strategy and data of Blanchard and Perotti (BP) to identify fiscal shocks and estimate fiscal multipliers for the United States. With these results, it computes the cumulative multiplier of Ramey and Zubairy (2018), now common in the literature. It finds that, contrary to the peak and through multipliers reported by BP, the cumulative tax multiplier is much larger than the cumulative spending one. Hence, the conclusions depend on the definition of multiplier. This methodology is also used to estimate the effects of fiscal shocks on economic activity in eight Latin American countries. The results suggest that the fiscal multipliers vary significantly across countries, and in some cases multipliers are larger than previously estimated.
Jorge Restrepo

cummulative multiplier is 1.6. Regarding the impact of tax shocks, the SVAR trough multiplier is 0.75, while the two-year cumulative multiplier is -3. The SVEC trough multiplier is 0.68, with a cummulative multiplier of -1.3 after two years. 13 Figure 7. Colombia: responses to a spending and tax shocks In the Dominican Republic, the peak spending multiplier is estimated at 0.40 after three quarters, and the cumulative multiplier at 0.47 after two years ( Table 3 and Figure 8 ). The trough tax multiplier is estimated at -0.48, reached on impact, and the