scholarly journals How Does Fiscal Policy Affect Bank Credit? Evidence from China

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Huan Yan ◽  
Weiguo Xiao ◽  
Qi Deng ◽  
Sisi Xiong
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Bank Credit ◽  
Tax Revenue ◽  
External Financing ◽  
Structural Vector Autoregression ◽  
Economic Data ◽  
Svar Model ◽  
Collateral Channel ◽  
Structural Vector

Using a set of Chinese economic data and a structural vector autoregression (SVAR) model, this paper investigates the transmission channels of fiscal policy to bank credit in China. We find that increases in tax revenue can increase bank credit through external financing premium channel, collateral channel, and bank liquidity channel. We also find that increases in government spending can reduce bank credit through bank liquidity channel and increase bank credit through external financing premium channel and collateral channel.

Tax Elasticities and the Macroeconomic Effects of Fiscal Policy in Greece

2018 ◽  
Vol 64 (1) ◽  
pp. 59-98 ◽  
Author(s):  
Andreas Zervas
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Income Tax ◽  
Structural Vector Autoregression ◽  
Personal Income Tax ◽  
Vector Autoregressions ◽  
Fuel Tax ◽  
Methodological Difference ◽  
Macroeconomic Effects ◽  
Structural Vector

Abstract In this paper I explore the effects of fiscal policy, in particular of both spending and taxes, on the Greek GDP, in the form of multipliers of GDP to a shock on the relevant fiscal instrument. A novel feature of this paper is that I try to estimate the effects of particular spending and tax components on GDP. I use Structural Vector Autoregression models and contemporaneous restrictions to identify fiscal shocks. A methodological difference with traditional SVARs is that I try to estimate the elasticities of the different taxes to GDP using the transitory components of the relevant time series. The results indicate that the macroeconomic effects of different fiscal instruments vary a lot, but spending on average has a higher multiplier than taxes, while personal income tax and fuel tax have the worst impact on the economy. JEL classifications: C32, E62, H2 Keywords: Fiscal Policy, Government Spending, Taxes, Macroeconomics, Structural Vector Autoregressions

scholarly journals SVAR ANALYSIS OF THE IMPACTS OF CORPORATE TAXATION ON THE MACRO ECONOMY OF LITHUANIA

Ekonomika ◽  
2012 ◽  
Vol 91 (4) ◽  
Author(s):  
V ioleta Klyvienė ◽  
Jaunius Karmelavičius
Keyword(s):  
Fiscal Policy ◽  
Corporate Taxation ◽  
Empirical Literature ◽  
Impulse Response Functions ◽  
Response Functions ◽  
Structural Vector Autoregression ◽  
Svar Model ◽  
Capital Tax ◽  
The Impact ◽  
Structural Vector

Abstract. This study aims to investigate the effects of tax policy on the macroeconomic variables of Lithuania. Special attention is devoted to conclusions concerning the impact of corporate taxation. The methodological framework is structural vector autoregression models identified using the Cholesky and Blanchard–Perotti approaches. Investigations of the impact of fiscal policy have been scarce in the empirical literature of Lithuania. The authors of this article use the methodology of assessing the impacts of fiscal policy that has not been used in Lithuania so for.JEL classification: E62, H25, F21.Key words: SVAR model, impulse response functions, fiscal policy, capital tax, investment

Assessing the Macroeconomic Effects of Quantitative Easing: Empirical Evidence from the Federal Reserve’s Experience

2019 ◽  
Vol 67 (3-4) ◽  
pp. 233-245
Author(s):  
Achille Dargaud Fofack ◽  
Ahmet Aker ◽  
Husam Rjoub ◽  
Amin Sokhanvar
Keyword(s):  
Stock Prices ◽  
Economic Activity ◽  
The United States ◽  
Quantitative Easing ◽  
Structural Vector Autoregression ◽  
Monthly Data ◽  
Svar Model ◽  
The Us ◽  
Us Dollar ◽  
Structural Vector

This article aims at assessing the effects of the Federal Reserve’s quantitative easing (QE) programmes on both economic activity and prices in the United States. Using a structural vector autoregression (SVAR) model on monthly data from January 2007 to March 2017, it is assumed that a substantial fraction of the liquidity injected under the Federal Reserve’s quantitative easing programmes was used to artificially inflate stock prices. Furthermore, QE is assumed to be a competitive devaluation programme. The findings reveal that QE helps support economic activity, while its effect on inflation is rather small and insignificant. Besides, it is also found that QE boosts stock prices but does not have a significant effect on the US dollar.

scholarly journals Corruption, fiscal policy, and growth: a unified approach

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Sugata Ghosh ◽  
Kyriakos C. Neanidis
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Income Tax ◽  
Government Expenditure ◽  
Tax Revenue ◽  
Unified Approach ◽  
Unified Framework ◽  
Bureaucratic Corruption ◽  
Inflation Rates ◽  
The Impact

AbstractWe study the effects of bureaucratic corruption on fiscal policy and economic growth, where corruption (i) reduces the tax revenue raised from households, (ii) inflates the volume of government spending, and (iii) reduces the productivity of “effective” government expenditure. We distinguish between the policies pursued by (a) a non-optimizing, and (b) an optimizing government. For both cases, corruption leads to higher income tax and inflation rates and a lower level of government spending, thus hindering growth. In the circumstances, an activist government could allocate its resources in attempting to reduce the type of corruption that harms growth the most. Finally, the findings from our unified framework could rationalize the sometimes conflicting empirical evidence on the impact of corruption on growth in the literature.

scholarly journals Uang Dan Moneter Dalam Sistem Keuangan Islam

2019 ◽  
Vol 1 (2) ◽  
pp. 80-100
Author(s):  
Joko Hadi Purnomo
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Government Spending ◽  
Supply And Demand ◽  
Tax Revenue ◽  
Monetary Policies ◽  
Goods And Services ◽  
State Income ◽  
The Stability ◽  
And Control

Money is a tool that can be used in conducting exchanges or transactions both goods and services in a certain area. Money is the standard of use found in goods and labor. Therefore, money is defined as a tool to measure the value of each item and service. There are two main policies in the economy called fiscal and monetary policies. Monetary policy is a policy that is carried out to control the supply and demand of money (money circulating in the community), the available money supply, the stability of the currency's value and the direction in which money will be allocated using appropriate monetary tools or instruments in order to achieve the objectives from monetary policy itself. The fiscal policy is a policy that is used to move the steps to obtain state income including tax revenue and control the direction of fiscal policy and control the amount of government spending and expenditure using fiscal tools, so that the objectives of the policy can be achieved fiscal itself in the economy. In this study, the author only focuses on discussing monetary policy and its implications for economic development in an Islamic perspective. Keywords: money, monetary, Islamic finance system

scholarly journals Analysis of The Relationship among Macroeconomics, Monetary and Income Inequality

2020 ◽  
Vol 9 (4) ◽  
pp. 427-442
Author(s):  
Abdulrahman Taresh A. ◽  
Dyah Wulan Sari ◽  
Rudi Purwono
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Government Spending ◽  
Bank Credit ◽  
Svar Model ◽  
Low Income Families ◽  
Credit Shocks ◽  
The Impact ◽  
The Relationship ◽  
Auto Regression

Income inequality in Indonesia remains a controversial issue in the context of Indonesian macroeconomic condition that is evolving in output and government spending, and its increase in consumption accompanied by inflation and slowing of bank credit. The purpose of this study is to investigate the relationship among macroeconomics, monetary and income inequality through a broad theoretical model by adopting a panel Structural Vector Auto-regression (SVAR) model to get more sample size during the period 2005-2018 at 33 provinces in Indonesia. The main results indicate that the variables of output and inflation have positive relationships. The relationship between output and income inequality is also significantly correlated, and those results supported by Kuznets's theory reveal that the relationship between economic growth and income inequality is positive in the short term. The relationship between inflation and income inequality is positive as well in Indonesia. This result is by the fact that low-income families are considered more vulnerable to inflation. The impact of non-food consumption shocks increases income inequality, while Indonesian government spending and bank credit shocks reduce income inequality. Then the response of savings and bank credit to the shock of income inequality is positive.

scholarly journals Can South America form an optimal monetary area? A structural vector autoregression analysis

2020 ◽  
Author(s):  
León Padilla ◽  
Ángel Rodriguez García-Brazales
Keyword(s):  
South America ◽  
Vector Autoregression ◽  
South American ◽  
Structural Vector Autoregression ◽  
Common Currency ◽  
Key Indicator ◽  
Svar Model ◽  
Regional Shocks ◽  
Structural Vector ◽  
Country Specific

AbstractThis research analyzes the feasibility of adopting a common currency in South America using the Optimal Monetary Areas theory. Taking into account that the relative dominance of regional shocks in local output is considered a key indicator to adopt a regional currency, we use a structural vector autoregression (SVAR) model to determine what type of shock —among global, regional or country specific— prevails in South American economies. The results of variance decomposition demonstrate that the output trajectory of South American countries is mainly explained by country-specific shocks; therefore, South America as a whole is not considered not an optimal monetary area. However, we identified a group of countries —named Sud-5 (comprised of Chile, Peru, Ecuador, Brazil and Argentina)— for which the costs of a hypothetical monetary union would be relatively lower.

THE REGIONAL ASYMMETRIC RESPONSES TO CENTRAL BANK’S MONETARY POLICY IN PAKISTAN

2017 ◽  
Vol 65 (02) ◽  
pp. 351-364
Author(s):  
NASEEM FARAZ ◽  
ZAINAB IFTIKHAR
Keyword(s):  
Monetary Policy ◽  
Impulse Response Functions ◽  
Response Functions ◽  
Structural Vector Autoregression ◽  
Monetary Policy Shocks ◽  
Limited Evidence ◽  
Svar Model ◽  
Policy Shocks ◽  
National Output ◽  
Structural Vector

Literature on differential impacts of monetary policy across regions discusses several factors which may be responsible for asymmetrical effects of monetary policy. As far as Pakistan is concerned, limited evidence is available for both mechanism and impact of monetary policy. In this study, we examine asymmetries in responses of real output of provinces to central bank’s monetary policy in Pakistan. We also attempt to explore the potential sources of these asymmetries. The Structural Vector Autoregression (SVAR) model is employed to examine each province’s response to unanticipated monetary policy shocks. The generalized impulse response functions from SVAR reveal that monetary policy has varied effects across the provinces. In two regions — Punjab and Sindh — monetary policy shocks cause variations in provincial outputs in similar ways. These responses are also comparable to the response of national output to changes in monetary policy but with considerable differences in magnitudes. While other provinces Khyber Pakhtunkhawa (KPK) and Balochistan show less sensitivity to unanticipated change in monetary policy. The less sensitive regions exhibit dissimilar responses both in timings and magnitudes. These dissimilarities in regional responses draw attention to devise an effective national monetary policy that might consider the cross-provincial differences in responses to central monetary policy in Pakistan.

Government investment fiscal multipliers: evidence from Euro-area countries

2021 ◽  
pp. 1-19
Author(s):  
Matteo Deleidi ◽  
Francesca Iafrate ◽  
Enrico Sergio Levrero
Keyword(s):  
Fiscal Policy ◽  
Euro Area ◽  
Government Expenditure ◽  
Structural Vector Autoregression ◽  
Government Investment ◽  
Fiscal Multipliers ◽  
Discretionary Fiscal Policy ◽  
The Government ◽  
Local Projections ◽  
Structural Vector

Abstract This paper aims to estimate the government investment fiscal multipliers in select European countries for the period 1970–2016. To do this, we combine Structural Vector Autoregression (SVAR) modeling with the Local Projections (LP) approach. We estimate models by also controlling for fiscal foresight, excluding the postcrisis period and distinguishing between Northern and Southern countries. Our findings suggest that an increase in government investment generates a “Keynesian effect” by engendering positive and permanent effects on the GDP level, even when government expenditure expectations are considered. Fiscal multipliers are close to 1 on impact and increase in the years after the implementation of a discretionary fiscal policy.

Sign in / Sign up

Export Citation Format

Share Document