BAĎO, Peter, Vlastimil REICHEL and Miroslav HLOUŠEK. The Effects of Fiscal Policy on Business Cycle: Evidence from SVAR Model with Debt Constraints. In Kapounek, S.. Proceedings of 18th International Conference Enterprise and Competitive Environment. Brno: Mendel University, 2015. p. 27-35, 9 pp. ISBN 978-80-7509-342-4.
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Basic information
Original name The Effects of Fiscal Policy on Business Cycle: Evidence from SVAR Model with Debt Constraints
Authors BAĎO, Peter (703 Slovakia, guarantor, belonging to the institution), Vlastimil REICHEL (203 Czech Republic, belonging to the institution) and Miroslav HLOUŠEK (203 Czech Republic, belonging to the institution).
Edition Brno, Proceedings of 18th International Conference Enterprise and Competitive Environment, p. 27-35, 9 pp. 2015.
Publisher Mendel University
Other information
Original language English
Type of outcome Proceedings paper
Field of Study 5.2 Economics and Business
Country of publisher Czech Republic
Confidentiality degree is not subject to a state or trade secret
Publication form electronic version available online
WWW Conference proceedings
RIV identification code RIV/00216224:14560/15:00084132
Organization unit Faculty of Economics and Administration
ISBN 978-80-7509-342-4
UT WoS 000380464000004
Keywords in English structural vector autoregression; fiscal and monetary policy; debt
Tags International impact, Reviewed
Changed by Changed by: Ing. Mgr. Vlastimil Reichel, učo 357467. Changed: 10/4/2019 22:09.
Abstract
This paper is focused on macroeconomic effects of fiscal and monetary policy in the Czech economy. We are using a Structural Vector Autoregression model (SVAR) for small open economy. The model includes six variables, specifically: government spending, government revenues, inflation, GDP, exchange and interest rates. Furthermore, the model is enriched with debt constraints over time. We investigate the dynamic responses of output, inflation and the interest rate to changes in government spending and revenues and analyze the contribution of shocks to business cycle in the Czech economy for the period 1999:Q1 – 2014:Q1. The results for the Czech economy are similar to the results for other small open economies described in current literature. Fiscal policy during the estimated period is analyzed through historical shock decomposition. Our findings are that GDP decreases in reaction to fiscal shock and monetary variables show negligible reaction to the same shock. We identified the periods of business cycle, where the effects of fiscal policy were procyclical and countercyclical.
Links
MUNI/A/0811/2013, internal MU codeName: Hospodářská politika v EU a ČR
Investor: Masaryk University, Grant Agency of Masaryk University, Category A
MUNI/A/1121/2014, internal MU codeName: Analýza chování ekonomiky během hospodářského cyklu pomocí dynamických makroekonomických modelů
Investor: Masaryk University, Grant Agency of Masaryk University, Category A
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