Changing impact of fiscal policy on selected ASEAN countries

► This paper investigates the effectiveness of fiscal policy in five ASEAN economies using an open economy SVAR model. ► We found government spending has no immediate and statistically significant impact on output for countries studied here. ► Tax increases generate positive output growth in all countries but only statistically significant in Thailand and Indonesia. ► Time-varying VAR reveal that the positive impact from higher taxes mainly concentrated around crisis periods.