We generate observable expectations about fiscal variables through laboratory experiments using real world data from several European countries as stimuli. We estimate an econometric model of individual expectations for fiscal policy, which nests various theories of expectations–forming and encompasses both microand macroeconomic lines of research on fiscal policy. Agents’ expectations are foun...

this paper, i have focused on the tax side of the fiscal policy to  investigate the past and future behavior of fiscal sustainability in iran. to do so, i have employed two different forward-looking and backward-looking approaches. first, the backward-looking approach is the fiscal policy rule proposed by daving & leeper (2011). precisely, this rule determines that whether the fiscal policy is ...

The implementation of a stabilizing fiscal policy is particular importance to the eurozone countries, which do not have ability make autonomous decisions in scope their monetary order ease fluctuations an economic cycle. aim this research was evaluate discretionary selected countries bloc. ex post analysis approaches national policies, with division into two sub-periods, conducted statistical m...

Little attention has been paid in most economic studies on political business cycles to separate the effects of fiscal and monetary policy. We attempt to assess the effect of monetary policy in a panel model for 14 OECD countries. To answer the question of whether central banks actively create political business cycles we focus on the short-term interest rate as a proxy for the use of monetary ...

This paper examines the effect of financial frictions on the strength of the monetary transmission mechanism. Credit channel theory implies that the transmission mechanism of monetary policy should be stronger in countries with high levels of financial frictions, all else equal. The intuition is that in these countries, external finance premiums are more sensitive to firms’ financial leverage. ...

This article analyzed the intertemporal interaction between monetary and fiscal policies in Brazil. We aimed at identifying if structural innovations to real interest rate were able induce unexpected effects on inflation dynamics. To do so, we estimated Structural Vector Autoregressive (SVAR) models over period from Jan/2004 Apr/2019. Moreover, filtered out time series’ long-memory co...

Fiscal policy is one of the instruments used by government in dealing with economic crises. The recent COVID-19 pandemic crisis has different characteristics from previous ones Indonesia. Hence, fiscal needed also different. Therefore, this study aims to know role shocks affecting some macroeconomic indicators, including GDP, inflation, and interest rate, Indonesia investigate its differences w...