Dear all, we would like to invite you to our next ECON Theory and Policy Seminar talk in November: Fri, November 12th, 4:30 – 5:30 p.m. (Seminarroom DB04 Freihaus building, yellow area) Nontradable Goods and Fiscal Multipliers Christian Glocker (WIFO)<https://www.google.com/url?q=https%3A%2F%2Fwww.wifo.ac.at%2Fchristian_glocker&sa=D&ust=1634027047483000&usg=AOvVaw2QBXVvO5zfesdoRIwXlM4G> https://www.wifo.ac.at/christian_glocker We assess the role that nontradable goods playas a determinant of fiscal spending multipliers, making use of a two-sector model. While fiscal multipliers increase with the share of nontradable goods, an inverted U-shaped relationship exists between multiplier size and the import share. Employing an interacted panel VAR model for EU countries, we estimate the effect of the share of nontradable goods on fiscal spending multipliers. Our empirical results provide strong evidence for the predictions of the theoretical model. They imply that the drag of fiscal consolidations is on average smaller in countries with a low share of nontradable goods. Due to the available room capacities, we ask you to register by sending a short mail to julia.hutter@tuwien.ac.at<mailto:julia.hutter@tuwien.ac.at>. Please note, that your digital COVID certificates (“Grüner Pass”) will be checked at the entrance of the building. Best regards, Julia Hutter for Alexia Fürnkranz-Prskawetz Julia Hutter TU Wien Institute of Statistics and Mathematical Methods in Economics Economics E105-3 Phone: +43-1-58801x10531 E-Mail: julia.hutter@tuwien.ac.at<mailto:julia.hutter@tuwien.ac.at> Julia Hutter TU Wien Institute of Statistics and Mathematical Methods in Economics Economics E105-3 Phone: +43-1-58801x10531 E-Mail: julia.hutter@tuwien.ac.at<mailto:julia.hutter@tuwien.ac.at>