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2005-08-03Buch DOI: 10.18452/3905
What are the Effects of Fiscal Policy Shocks?
dc.contributor.authorMountford, Andrew
dc.contributor.authorUhlig, Harald
dc.date.accessioned2017-06-15T22:57:41Z
dc.date.available2017-06-15T22:57:41Z
dc.date.created2005-09-01
dc.date.issued2005-08-03
dc.identifier.issn1860-5664
dc.identifier.urihttp://edoc.hu-berlin.de/18452/4557
dc.description.abstractWe propose and apply a new approach for analyzing the effects of fiscal policy using vector autoregressions. Unlike most of the previous literature this approach does not require that the contemporaneous reaction of some variables to fiscal policy shocks be set to zero or need additional information, such as the timing of wars, in order to identify fiscal policy shocks. The paper´s method is a purely vector autoregressive approach which can be universally applied. The approach also has the advantages that it is able to model the effects of announcements of future changes in fiscal policy and that it is able to distinguish between the changes in fiscal variables caused by fiscal policy shocks and those caused by business cycle and monetary policy shocks. We apply the method to US quarterly data from 1955-2000 and obtain interesting results. Our key finding is that the best fiscal policy to stimulate the economy is a deficit-financed tax cut and that the long term costs of fiscal expansion through government spending are probably greater than the short term gains.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectFiscal Policyeng
dc.subjectVector Autoregressioneng
dc.subjectBayesian Econometricseng
dc.subjectAgnostic identificationeng
dc.subject.ddc330 Wirtschaft
dc.titleWhat are the Effects of Fiscal Policy Shocks?
dc.typebook
dc.identifier.urnurn:nbn:de:kobv:11-10045598
dc.identifier.doihttp://dx.doi.org/10.18452/3905
local.edoc.container-titleSonderforschungsbereich 649: Ökonomisches Risiko
local.edoc.pages52
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2005
local.edoc.container-issue39
local.edoc.container-year2005
local.edoc.container-erstkatid2195055-6

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