Ito, Arata; Watanabe, Tsutomu; Yabu, Tomoyoshi - In: Journal of the Japanese and International Economies 25 (2011) 4, pp. 380-413
This paper estimates fiscal policy feedback rules in Japan, the United States, and the United Kingdom for more than a century, allowing for stochastic regime changes. Estimating a Markov-switching model by the Bayesian method, we find the following: First, the Japanese data clearly reject the...
