Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336023 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 12321
Publisher: 
Munich Society for the Promotion of Economic Research - CESifo GmbH, Munich
Abstract: 
We conduct a large-scale information randomized controlled trial to study fiscal policy impacts. Surveying approximately 9,000 households across five eurozone countries with varying debt-to-GDP ratios enables a clean cross-country comparison. The key finding is that the fiscal multiplier depends jointly on the financing method and the country's debt burden: multipliers are smaller in high-debt countries when debt-financed but remain similar across countries when tax-financed. Finally, we develop a New Keynesian model featuring fiscal discipline, which reproduces the empirical patterns observed in the survey and highlights their underlying economic mechanisms.
Subjects: 
survey RCT
fiscal multiplier
financing method
debt-to-GDP ratio
JEL: 
C83
D84
E62
H60
Document Type: 
Working Paper
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