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results. Our key finding is that the best fiscal policy to stimulate the economy is a deficit-financed tax cut and that the …
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We propose and apply a new approach for analyzing the effects of fiscal policy using vector autoregressions. Specifically, we use sign restrictions to identify a government revenue shock as well as a government spending shock, while controlling for a generic business cycle shock and a monetary...
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We propose and apply a new approach for analyzing the effects of fiscal policy using vector autoregressions. Specifically, we use sign restrictions to identify a government revenue shock as well as a government spending shock, while controlling for a generic business cycle shock and a monetary...
Persistent link: https://www.econbiz.de/10012464097
consumption, that a deficit spending cut stimulates the economy for the first 4 quarters but has a low median multiplier of 0 … intergenerational redistribution with limits to the compensating effects of bequests. The best fiscal policy for stimulating the economy …
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