REMINDER:

Dear all,

the next Economic Theory and Policy Seminar talk will take place on

Fri, November 12^th, 4:30 – 5:30 p.m. (Seminarroom DB04 Freihaus building, yellow area):

Nontradable Goods and Fiscal Multipliers
Christian Glocker (WIFO) 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 restricted room capacities, we ask you to register by sending a short mail to 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