The Impact of Fiscal Policy on the U.S. Stock Market Return

Ilhami Gunduz
Additional contact information
Ilhami Gunduz: Department of Economics, Fordham University, Bronx, NY, USA

Journal of Economic Analysis, 2025, vol. 4, issue 2, 218-236

Abstract: In this study, I analyze the impact of the aggregate, income, corporate and social security tax revenues on both the U.S. output and the stock market return in a structural vector autoregression (SVAR) framework between 1960:Q1 and 2015:Q4. Unlike some of the other studies, I use aggregate and disaggregated tax revenue variables to examine the impact of scal policy. Results show that an increase in aggregate tax revenue reduces output and market return. In addition, an increase in income, corporate, and social security tax revenues reduces output and the market return signi cantly at varying degrees.

Keywords: Fiscal Policy; Monetary Policy, Stock Market Return; Taxation; Financial Economics (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.anserpress.org/journal/jea/4/2/107/pdf (application/pdf)
https://www.anserpress.org/journal/jea/4/2/107 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bba:j00001:v:4:y:2025:i:2:p:218-236:d:424

Access Statistics for this article

Journal of Economic Analysis is currently edited by Ramona Wang

More articles in Journal of Economic Analysis from Anser Press
Bibliographic data for series maintained by Ramona Wang ().