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Exploring the Output Effect of Fiscal Policy Shocks in Low Income Countries
2020
IMF Working Papers
What do we know about the output effects of fiscal policy in low income countries (LICs)? There are very few empirical studies on the subject. This paper fills this gap by estimating the output effects of government spending shocks in LICs. Our analysis—based on the local projection method—finds that the output effects in LICs are markedly lower than those in AEs and marginally smaller than those in EMs. We also find that in LICs, the output effects are larger (i) during recessions; (ii) under
doi:10.5089/9781513526034.001
fatcat:ah3hbz574bc3vdhv2htm6gh6ra