Panel data evidence on effects of fiscal impulses in the EU New Member States

Paweł Borys, Piotr Ciżkowicz () and Andrzej Rzońca

MPRA Paper from University Library of Munich, Germany

Abstract: We identify fiscal impulses in the EU New Member States using four different methods and apply econometric panel data techniques to determine what is the response of output and its components to those impulses. We also directly test the effects of fiscal impulses on labor costs and households’ expectations. The results confirm that the composition of impulses matters for output and its components response. Notably we find evidence that investment and export growth accelerates after fiscal adjustment and decelerates after fiscal stimulus when the impulses are expenditure based. In turn, private consumption seems not to respond to fiscal impulses regardless of their size. The analysis confirms that expenditure based fiscal adjustments enhance wage moderation and thereby competitiveness of domestic enterprises, while expenditure-based fiscal stimuli weaken it. By contrast, we do not find evidence that fiscal impulses have an effect on households’ confidence.

Keywords: expansionary fiscal adjustment; contractionary fiscal stimulus; New Member States; panel data (search for similar items in EconPapers)
JEL-codes: C22 D22 E24 E62 H30 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-eec, nep-fdg, nep-pbe and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/48243/1/MPRA_paper_48243.pdf original version (application/pdf)

Related works:
Journal Article: Panel Data Evidence on the Effects of Fiscal Policy Shocks in the EU New Member States (2014)
Working Paper: Panel data evidence on the effects of fiscal impulses in the EU New Member States (2013)
Working Paper: Panel data evidence on non-Keynesian efects of fiscal policy in the EU New Member (2011)
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:pra:mprapa:48243

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().