Author(s):
Afonso, António 
; Jalles, João Tovar
Date: 2011
Persistent ID: http://hdl.handle.net/10400.5/3783
Origin: Repositório da UTL
Subject(s): Fiscal regimes; Panel VAR; Cross-sectional dependence
Document details
Appraising fiscal reaction functions
Description
We estimate fiscal responses for an OECD panel, accounting for cross-country interactions, and also estimate the fiscal responses in a panel VAR. We find that governments have increased primary balances when facing higher government indebtedness, implying a Ricardian fiscal regime, while primary balances have improved to reduce government debt. These results hold for the single regression panel analysis and for the panel VAR.
We estimate fiscal responses for an OECD panel, accounting for cross-country interactions, and also estimate the fiscal responses in a panel VAR. We find that governments have increased primary balances when facing higher government indebtedness, implying a Ricardian fiscal regime, while primary balances have improved to reduce government debt. These results hold for the single regression panel analysis and for the panel VAR.
Document Type
Other
Language English
Language English
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