Saeidinezhad, Elham (2014): The International Spillover of Fiscal and Technology Shocks before the Crisis: The case of the UK and Italy.
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Abstract
In this paper, we attempt to shed new light on the dynamic impacts of gov- ernment spending and technology shocks on the real exchange rate for the Euro area. The main idea under this identification scheme is to let the data speak about the behavior of the interested variables. Moreover, this paper investigates the impacts of fiscal policy and technology shock jointly in contrast to most of the literature which just focuses on one shock only. Our investigation suggests that the real exchange rate appreciates (falls) following an expansionary fiscal shock. It appreciates in response to a positive technology shock as well however after an on impact depreciation (increase) which lasts for 8 quarters.
Item Type: | MPRA Paper |
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Original Title: | The International Spillover of Fiscal and Technology Shocks before the Crisis: The case of the UK and Italy |
Language: | English |
Keywords: | Fiscal Policy, Technology Shock,International Spillover, Financial Crisis, VAR |
Subjects: | C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy |
Item ID: | 98556 |
Depositing User: | Dr Elham Saeidinezhad |
Date Deposited: | 09 Feb 2020 15:50 |
Last Modified: | 09 Feb 2020 15:50 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/98556 |