Article ID Journal Published Year Pages File Type
5059537 Economics Letters 2013 6 Pages PDF
Abstract
We introduce non-linear fiscal reaction functions with endogenously estimated state-varying thresholds to capture the behaviour of fiscal policy authorities during “good” and “bad” times. These thresholds vary with the level of debt, the economic cycle and a financial pressure index.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Modelling the fiscal reaction functions of the GIPS based on state-varying thresholds
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