An estimated fiscal Taylor Rule for the postwar United States

Claire Reicher

Economics Letters, 2012, vol. 114, issue 3, 319-321

Abstract: This paper estimates a multi-instrument fiscal Taylor Rule for the United States. Taxes and purchases both respond strongly to deficits, while transfers do not. Taxes are procyclical; purchases are acyclical; and transfers are countercyclical. These estimates appear stable over time.

Keywords: Spending reversals; Fiscal Taylor Rule; Deficits; Taxes; Government spending; Transfer payments (search for similar items in EconPapers)
JEL-codes: E62 E63 H20 H62 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:3:p:319-321

DOI: 10.1016/j.econlet.2011.10.020

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