The economic effects of fiscal policy: Further evidence for Spain

Previous research considered the impacts of fiscal policy on economic activity in Spain using Vector autoregression (VAR) models. In this paper, we contribute to existing literature by making use autoregressive distributed lag estimation procedures that present significant advantages over VAR alternative. Our econometric methodology is data-driven, and it allows us select statistical model best approximates relationship between variables under study assess short- long-run symmetric asymmetric effects output performance. Using quarterly time-series data for covering period 1980Q1–2020Q4, offer quantitative estimates these both aggregated disaggregated public expenditures net revenues. These results would be useful policymakers design a well-informed macroeconomic debt management strategy.