Effects of discretionary fiscal policy:new empirical evidence for Germany

This paper analyses the effects of discretionary fiscal policy by presenting new empiricalevidence for Germany within a structural vector autoregression (SVAR) framework. FollowingBlanchard and Perotti (2002), the SVAR model is identified by applying institutionalinformation. We find no compelling evidence for the effectiveness of discretionaryfiscal policy. Cutting taxes does not tend to stabilise the business cycle. Increasing governmentexpenditure has an ambiguous effect on GDP for the basic specification...

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Year of publication:	2011-03-01
Authors:	Bank, Alexander
Institutions:	Universität <Hannover> / Wirtschaftswissenschaftliche Fakultät
Subject:	Deutschland \| Germany \| Fiskalpolitik \| Autoregressiver Prozess

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Extent:	144384 bytes 25 p. application/pdf
Series:	Leibniz Universität Hannover - Wirtschaftswissenschaftliche Fakultät - Diskussionspapiere Discussion Paper ; No. 470 (2011)
Type of publication:	Book / Working Paper
Language:	English
Classification:	C32 - Time-Series Models ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H30 - Fiscal Policies and Behavior of Economic Agents. General ; Business administration. General ; Corporate taxation and accounting. General ; Individual Working Papers, Preprints ; GERMANY
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10009302592