The 'saving for a rainy day' hypothesis implies that households' saving decisions reflect that they can (rationally) predict future income declines. The empirical relevance of this hypothesis plays a key role in discussions of fiscal policy multipliers and it holds under the null that the...

The 'saving for a rainy day' hypothesis implies that households' saving decisions reflect that they can (rationally) predict future income declines. The empirical relevance of this hypothesis plays a key role in discussions of fiscal policy multipliers and it holds under the null that the...

Instead of relying on descriptive statistics to evaluate the permanence of a fiscal contraction, this paper suggests that this issue should be studied using tests for structural breaks in cointegrating relationships between taxes and spending. We label a fiscal contraction as 'permanent' if a...

The `saving for a rainy day' hypothesis implies that households' saving decisions reflect that they can (rationally) predict future income declines. The empirical relevance of this hypothesis plays a key role in discussions of fiscal policy multipliers and it holds under the null that the...

Like many developing countries, Togo is facing a deficit of financial resources that leads to a dependence on international financial institutions. A better mobilization of internal resources could allow this country to reduce its deficit of resources and better control its process of economic...

Contributing to the controversial issue on the impact of government spending on economic growth, this paper shows that government spending has both long-run and short-run impacts in stimulating aggregate output in Thailand during the floating exchange rate regime. In addition, real money supply...