Asymmetric Effects

Asymmetric Fiscal Policy Shocks

JEL codes: 
Version Date: 
Nov 2012

We empirically test the effects of unanticipated fiscal policy shocks on the level and growth rate of real output and reveal different types of asymmetries in fiscal policy implementation. The data used are quarterly U.S. observations over the period 1967:1 to 2011:4. In doing so, we use six alternative vector autoregressive systems in order to construct the fiscal policy shocks.

Report file: 
PDF icon Download the paper (908.03 KB)