Is fiscal policy more effective in uncertain times or during recessions?

Mario Alloza

No 1730, Working Papers from Banco de España

Abstract: This paper estimates the impact of government spending shocks on economic activity during periods of high and low uncertainty and during periods of boom and recession. We find that government spending shocks have larger impacts on output in booms than in recessions and larger impacts during tranquil times than during uncertain times. The results suggest that confidence plays an important role in explaining this differential impact.

Keywords: fiscal policy; vector autoregressions; uncertainty (search for similar items in EconPapers)
JEL-codes: C32 E32 E62 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2017-08
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (19)

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... /17/Fich/dt1730e.pdf First version, August 2017 (application/pdf)

Related works:
Working Paper: Is Fiscal Policy More Effective in Uncertain Times or During Recessions? (2016)
Working Paper: Is fiscal policy more effective in uncertain times or during recessions? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:1730

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