Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210808 
Authors: 
Year of Publication: 
2014
Series/Report no.: 
CBM Working Papers No. WP/06/2014
Publisher: 
Central Bank of Malta, Valletta
Abstract: 
This paper employs a Structural Vector Autoregression approach à la Blanchard and Perotti (2002) to investigate the impact of discretionary fiscal policy shocks on key macroeconomic variables in Malta. In order to gauge the quantitative impact of fiscal policy over the period 1995 to 2012, impact and cumulative multipliers are calculated. The response of GDP to government expenditure shocks and its components is low on impact but larger than one cumulatively. Moreover, private consumption responds positively to shocks in government spending, while private investment declines after a positive innovation to government expenditure.
JEL: 
E32
E62
H20
H50
Document Type: 
Working Paper

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