Logo
Munich Personal RePEc Archive

Effects of fiscal shocks in new EU members estimated from a SVARX model with debt feedback

Stanova, Nadja (2015): Effects of fiscal shocks in new EU members estimated from a SVARX model with debt feedback.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_63148.pdf

Download (561kB) | Preview

Abstract

This paper analyses in a VAR framework with debt feedback effects of fiscal policy over 1999q1-2013q4 in five Central and East European economies: Slovakia, Czech republic, Hungary, Slovenia and Lithuania. The results are compared to two alternative specifications, a model without debt feedback, and a model with debt within the linear VAR. Omitting the debt feedback would affect the magnitude and sign of the impulse response coefficients, especially those of GDP, government revenue and interest rate. Simulated out-of-sample debt paths are stabilised if debt feedback is included, but strongly explosive otherwise.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.