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Empirical Investigation of Fiscal Policy Shocks in the UK

By Mona Kamal


This article examines fiscal policy shocks in the UK through using a Bayesian Vector Autoregression (BVAR) model which applies Mountford and Uhlig (2009) type sign-restriction. It investigates the impact of three fiscal policy experiments on macroeconomic variable. Specifically, the Deficit-Financed Spending Increase (DFSI), the Deficit-Financed Tax Cut (DFTC), and the Balanced-Budget Spending Increase (BBSI). The results show that, the policy conclusion differs according to the period under investigation.

Topics: E62 - Fiscal Policy, H60 - General, E60 - General
Year: 2010
DOI identifier: 10.2139/ssrn.1711968
OAI identifier: oai:mpra.ub.uni-muenchen.de:26473

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