Munich Personal RePEc Archive

International spillovers from U.S. fiscal policy shocks

Nicar, Stephen (2014): International spillovers from U.S. fiscal policy shocks. Forthcoming in: Open Economies Review

This is the latest version of this item.

[thumbnail of MPRA_paper_63214.pdf]

Download (304kB) | Preview
[thumbnail of MPRA_paper_64332.pdf]

Download (309kB) | Preview


I estimate the effect of U.S. government spending and tax shocks on Canada and the U.K. from 1975 to 2014, and on Japan from 1979 to 2014. Spending and tax shocks are identified using sign restrictions on the impulse responses from a vector autoregression (VAR). I find that spillover effects of expansionary fiscal shocks are not uniform across countries, though for all three countries they result in economically significant GDP increases in the short run. In addition, government spending shocks have larger effects than net tax shocks. Altogether, the results support the idea that some countries may benefit significantly from expansionary U.S. fiscal policy.

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.