Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors

The author uses a novel loan-level dataset covering lending by official creditors to developing country governments to construct an instrument for government spending. Loans from official creditors typically finance multiyear public spending projects, with disbursements linked to the stages of proje...

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Bibliographic Details
Main Author:	Kraay, Aart
Format:	Journal Article
Language:	en_US
Published:	American Economic Association 2015
Subjects:	official lending fiscal policy government expenditure monetary policy
Online Access:	http://hdl.handle.net/10986/22640

id	okr-10986-22640
recordtype	oai_dc
spelling	okr-10986-226402021-04-23T14:04:10Z Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors Kraay, Aart official lending fiscal policy government expenditure monetary policy The author uses a novel loan-level dataset covering lending by official creditors to developing country governments to construct an instrument for government spending. Loans from official creditors typically finance multiyear public spending projects, with disbursements linked to the stages of project implementation. The identification strategy exploits the long lags between approval and eventual disbursement of these loans to isolate a predetermined component of public spending associated with past loan approval decisions taken before the realization of contemporaneous shocks. In a large sample of 102 developing countries over the period 1970-2010, the one-year spending multiplier is reasonably-precisely estimated to be around 0.4. 2015-09-17T19:00:23Z 2015-09-17T19:00:23Z 2014-10 Journal Article American Economic Journal: Macroeconomics 1945-7707 http://hdl.handle.net/10986/22640 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo American Economic Association American Economic Association Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	official lending fiscal policy government expenditure monetary policy
spellingShingle	official lending fiscal policy government expenditure monetary policy Kraay, Aart Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors
description	The author uses a novel loan-level dataset covering lending by official creditors to developing country governments to construct an instrument for government spending. Loans from official creditors typically finance multiyear public spending projects, with disbursements linked to the stages of project implementation. The identification strategy exploits the long lags between approval and eventual disbursement of these loans to isolate a predetermined component of public spending associated with past loan approval decisions taken before the realization of contemporaneous shocks. In a large sample of 102 developing countries over the period 1970-2010, the one-year spending multiplier is reasonably-precisely estimated to be around 0.4.
format	Journal Article
author	Kraay, Aart
author_facet	Kraay, Aart
author_sort	Kraay, Aart
title	Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors
title_short	Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors
title_full	Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors
title_fullStr	Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors
title_full_unstemmed	Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors
title_sort	government spending multipliers in developing countries : evidence from lending by official creditors
publisher	American Economic Association
publishDate	2015
url	http://hdl.handle.net/10986/22640
_version_	1764451642224148480

Government Spending Multipliers in Developing Countries : Evidence from Lending by Official Creditors

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