Expectation shocks and fiscal rules

International Economics and Economic Policy - Tập 16 - Trang 357-377 - 2017
Dennis Wesselbaum1
1Department of Economics, University of Otago, Dunedin, New Zealand

Tóm tắt

This paper discuss expectation (or news) shocks to government expenditures: consumption or investment spending in an otherwise standard RBC model of the U.S. economy. In addition, we study the differences emerging from modelling fiscal policy with and without fiscal rules. We find that news about future fiscal policy generate dramatically different effects, if fiscal policy follows a rule. Our findings have several implications for the design and the implementation of fiscal policy as well as the estimation of fiscal shocks.

Tài liệu tham khảo

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