Fiscal foresight: Do expectations have cross-border effects?

Simone Romano

Journal of Macroeconomics, 2018, vol. 57, issue C, 71-82

Abstract: This paper estimates the cross-border effects of U.S. fiscal shocks on four main trading partners within a two-country Bayesian VAR framework. Using an identification strategy which differentiates between expected and unexpected government spending shocks, it provides evidence in support of the hypothesis that expectations alter fiscal policy transmission at both national and international level.

Keywords: Fiscal foresight; Fiscal spillovers; VAR model; Fiscal policy (search for similar items in EconPapers)
JEL-codes: C32 E62 F42 H68 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164070417304603
Full text for ScienceDirect subscribers only

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:eee:jmacro:v:57:y:2018:i:c:p:71-82

DOI: 10.1016/j.jmacro.2018.05.001

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().