01778cas a2200241 a 4500 AALejournalIMF017527 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475588262 1018-5941 BD-DhAAL BD-DhAAL David, Antonio. Fiscal Policy Effectiveness in a Small Open Economy : Estimates of Tax and Spending Multipliers in Paraguay / Antonio David. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper presents estimates of fiscal multipliers in Paraguay following different econometric techniques and identification approaches. The results point to multipliers for capital expenditure that are substantially higher than multipliers for current expenditure. In addition, the evidence suggests that tax multipliers are close to zero when using conventional identification approaches, but estimates can be much larger when considering the 'narrative' approach. One implication of the results is that the balanced budget multiplier for Paraguay id est the effect of on output of an increase in expenditures (in particular capital expenditure) financed by taxes is likely to be positive. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2017/063 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/063/001.2017.issue-063-en.xml IMF e-Library