Stochastic Trends Debt Sustainability and Fiscal Policy is popular PDF and ePub book, written by Karim Barhoumi in 2016-03-10, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, Stochastic Trends Debt Sustainability and Fiscal Policy can be Read Online from any device for your convenience.
Stochastic Trends Debt Sustainability and Fiscal Policy Book PDF Summary
We study empirically the reaction of fiscal policy to changes in the permanent and transitory components of GDP in a panel of countries. We find evidence that government spending tends to be counter-cyclical conditional on temporary shocks and pro-cyclical conditional on permanent shocks. We also find no evidence that developing countries are systematically different from developed ones in terms of fiscal policy. We present a theory featuring a fiscal reaction function to the output gap and a measure of debt sustainability. The fiscal impulse response to a permanent (temporary) shock to GDP is positive (negative) as the effect on debt sustainability (current output gap) dominates. The results are mostly sensitive to the relative weight of debt sustainability in the fiscal reaction function as well as to the extent of real rigidities in the economy.
Detail Book of Stochastic Trends Debt Sustainability and Fiscal Policy PDF
- Author : Karim Barhoumi
- Release : 10 March 2016
- Publisher : International Monetary Fund
- ISBN : 9781513574677
- Genre : Business & Economics
- Total Page : 45 pages
- Language : English
- PDF File Size : 21,9 Mb
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