Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210822 
Authors: 
Year of Publication: 
2017
Series/Report no.: 
CBM Working Papers No. WP/04/2017
Publisher: 
Central Bank of Malta, Valletta
Abstract: 
This paper documents the fiscal extension to MEDSEA, the Central Bank of Malta DSGE model. The model contains a relatively rich fiscal sector. Decisions made by the agents in the model are affected by distortionary taxes on labour income, capital income and consumption. On the expenditure side, the model distinguishes between public sector expenditure on final goods and services, public investment, public employment as well as transfers to households. The model is used to assess the size of fiscal multipliers in a very open and small open economy such as Malta. Both transitory and permanent shocks are considered. It also allows for changes in the instrument used to finance the change in fiscal policy.
JEL: 
E62
H63
Document Type: 
Working Paper

Files in This Item:
File
Size
734.89 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.