Growth Forecast Errors and Government Investment and Consumption Multipliers
				Jovanovic Branimir			
		
				CEIS Research Paper
		
				We compare the government investment and government consumption multipliers in the advanced economies during the recent 
fiscal consolidation, following the Blanchard and Leigh (2013) approach. We fi
nd that, in the highly-indebted countries, the investment multplier is likely to be much higher than what has been assumed by the policy makers and much higher that the consumption multiplier. This points out that the consolidation should be accompanied by increased public investment.
		
				
		
	Number: 301
		
				Keywords: fi 
scal consolidation, fi
scal multiplier, public consumption, public investment, public debt
		
				JEL codes: E52, E62, E63, G01
		
				Volume: 12
		
				Issue: 01
		
				Date: Tuesday, December 17, 2013
		
				Revision Date: Tuesday, December 17, 2013