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We examine the effect of federal and subnational fiscal policy on aggregate demand in the U.S. by introducing the fiscal effect (FE) measure. FE can be decomposed into three components. Discretionary FE quantifies the effect of discretionary or legislated policy changes on aggregate demand....
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We estimate GARCH-M model to measure the impact of the financial crisis on stock market returns and volatility by … introducing dummy variables in the mean and variance equations to measure the behavior of stock return and volatility during the … 2004. As a result, the drastic changes in volatility may initiate the negative and positive shifts based on the impact of …
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