The Effects of Government Purchases Shocks: Review and Estimates for the EU

• 成果类型: Article
• 署名作者: Beetsma, Roel; Giuliodori, Massimo
• 署名单位: University of Amsterdam; Tinbergen Institute; University of Amsterdam
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2010.02413.x
• 发表日期: 2011
• 页码: F4-F32
• 关键词: fiscal-policy; exchange-rate; deficits

摘要

In this article, we review the theoretical consequences of government purchases shocks for both closed and open economies, followed by a discussion of the empirical literature. Next, we provide our own estimates for the EU countries. We find that an increase in government purchases raises output, consumption and investment and reduces the trade balance. However, the stimulating effect is weaker and the trade balance reduction is larger for the more open EU economies, consistent with larger leakage effects. Further, we show that government purchases shocks in large EU economies have non-negligible consequences for economic activity in the main trading partners.