 Comparison of the stabilising effects of government spending shocks in the Czech Republic, Hungary and PolandEconomic Research-Ekonomska Istraživanja, 2019, vol. 32, issue 1, 2899-2923 Abstract: This study examines the effects of government spending shocks in three Central and Eastern European (CEE) countries: the Czech Republic, Hungary and Poland. The article uses structural vector autoregression (SVAR) models with an identification scheme based on that of Blanchard and Perotti (2002). The results of government spending shocks in these countries are consistent with the general view that the spending innovation increases output in the short term. The impulse response functions show that the maximum response of output to spending shocks is lagged. In order to measure the effects of fiscal shocks, the peak and cumulative multipliers are calculated. In the baseline specification, which is the same for each country, the calculated peak spending multiplier (adjusted to be interpreted in the national currency) ranges from 0.2 in the Czech Republic to more than 1 in Poland. The response of GDP to spending shock is larger than 1 cumulatively. Date: 2019 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:reroxx:v:32:y:2019:i:1:p:2899-2923 Ordering information: This journal article can be ordered from DOI: 10.1080/1331677X.2019.1653783 Access Statistics for this article Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals |
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