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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

multipliers computed as in Ramey and Zubairy (2018) but using with BP’s estimated impulse responses are smaller than the point estimates reported by BP, while the cumulative tax multipliers are much larger. Hence, the definition of multiplier matters. BP’s definition is in line with the VAR tradition (Sims, 1980), where the responses of the variables are traced after an exogenous shock leads to joint movements of variables. The cumulative multiplier, according to Ramey and Zubairy (2018) , may be a better representation when the effects of fiscal policy build over time

Mr. Antonio David
This paper presents estimates of fiscal multipliers in Paraguay following different econometric techniques and identification approaches. The results point to multipliers for capital expenditure that are substantially higher than multipliers for current expenditure. In addition, the evidence suggests that tax multipliers are close to zero when using conventional identification approaches, but estimates can be much larger when considering the “narrative” approach. One implication of the results is that the balanced budget multiplier for Paraguay i.e. the effect of on output of an increase in expenditures (in particular capital expenditure) financed by taxes is likely to be positive.
Mr. Machiko Narita

in period t . Another frequently used notion is the cumulative multiplier, which is defined as Σ j = 0 N Δ Y t + j / Σ j = 0 N Δ G t + j . Since fiscal stimulus packages can only be implemented over time and there may be lags in the economy’s response, the cumulative multiplier may be more accurate in capturing the impact of fiscal policy. We can define tax-revenue multipliers in the same way. Interpreting fiscal multipliers requires