Faculty of Economics and Business Administration Publications Database

The Effects of Discretionary Fiscal Policy on Macroeconomic Aggregates: A Reappraisal

Volume: 25
Number: 4
Pages: 674 - 707
Month: September
ISSN-Print: 0950-0804
Link External Source: Online Version
Year: 2011
Keywords: Fiscal policy; Fiscal stimulus; Macroeconomic policy; Multipliers; VAR
Abstract: Fiscal stimuli to recover? A cascade of academic and layman articles debate the effectiveness of fiscal policy in stimulating the economy backed up by different economic models and empirical support. This paper surveys the theoretical predictions and recent empirical vector autoregression evidence on the short-run effects of discretionary fiscal policy on macroeconomic aggregates.