scholarly journals The impact of external shocks in East Asia: Lessons from a structural VAR model with block exogeneity

2013 ◽  
Vol n° 132 (4) ◽  
pp. 35-89
Author(s):  
Jean-Pierre Allegret ◽  
Cécile Couharde ◽  
Cyriac Guillaumin
Keyword(s):  
East Asia ◽  
Structural Var ◽  
Var Model ◽  
External Shocks ◽  
The Impact

scholarly journals The impact of external shocks in East Asia: Lessons from a structural VAR model with block exogeneity

2012 ◽  
Vol 132 ◽  
pp. 35-89 ◽  
Author(s):  
Jean-Pierre Allegret ◽  
Cécile Couharde ◽  
Cyriac Guillaumin
Keyword(s):  
East Asia ◽  
Structural Var ◽  
Var Model ◽  
External Shocks ◽  
The Impact

scholarly journals The dynamic impact of external shocks on fiscal reaction function in a small open economy

2020 ◽  
Vol 9 (2) ◽  
pp. 84
Author(s):  
Chee Loong Lee
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
Structural Var ◽  
Var Model ◽  
Reaction Function ◽  
External Shocks ◽  
Dynamic Impact ◽  
Budgetary Policy ◽  
Fiscal Reaction Function ◽  
The One

Fiscal authorities in a small open economy should utilize its fiscal instrument feedback to external shocks. This paper analyzes the dynamic respond of budgetary policy to external shocks in Malaysia by a Structural VAR model. On the one hand, the results confirm that external shocks have a significant effect on fiscal reaction function variables. On the other hand, the direct consideration of budgetary reaction of Malaysia to external shocks is limited. Therefore, fiscal authorities should enhance its feedback to external shocks to achieve stable and sustain growth.

scholarly journals Corruption and Economic Growth: The Case of Portugal

2019 ◽  
pp. 11-33
Author(s):  
Pedro Bação ◽  
Inês Gaspar ◽  
Marta Simões
Keyword(s):  
Economic Growth ◽  
Structural Var ◽  
Var Model ◽  
Sources Of Information ◽  
Factor Productivity ◽  
Aggregate Production ◽  
Transparency International ◽  
Long Run ◽  
Aggregate Production Function ◽  
The Impact

In this paper we investigate the impact of corruption on economic growth in Portugal over the period 1980-2018. The empirical approach makes use of a VAR model inspired by the standard Cobb-Douglas aggregate production function. The VAR model includes the capital stock, hours worked, total factor productivity and the corruption perceptions index (CPI) of Transparency International. The CPI combines several sources of information on the level of corruption in each country. The scale of this index goes from 0, the highest level of corruption, to 10, the lowest level. The magnitude of the estimated effect of corruption on economic growth in the unrestricted VAR model is large (and positive), but statistically not significantly different from zero. However, the results from the estimation of a structural VAR model with economically plausible long-run restrictions indicate modest gains from reducing corruption.

Tracking the Transmission Channels of Fiscal Deficit and Food Inflation Linkages: A Structural VAR Approach

2020 ◽  
pp. 165-172
Keyword(s):  
Positive Impact ◽  
Structural Var ◽  
Fiscal Deficit ◽  
Agricultural Industry ◽  
Vector Autoregressive ◽  
Transmission Channels ◽  
Government Deficit ◽  
Import And Export ◽  
The Impact ◽  
Food Inflation

This empirical analysis aspired to unearth the transmission channels of fiscal deficit and food inflation linkages in the Indian perspective by reasonably exerting the data for 1991 to 2017. The precise results of structural vector autoregressive (SVAR) analysis proffered that there were three different mechanisms of transmission such as consumption, general inflation, and import channels that led to food inflation in response to the high fiscal deficit. The first channel revealed that government deficit spending had a positive impact on income which further led to food inflation through surging the household consumption expenditure. It was concluded that fiscal deficit passed through general inflation finally leading to a food price surge in the economy and seemed to work as cost-push inflation for the food and agricultural industry. The outcome also revealed that the impact of fiscal deficit passed to food inflation through external linkages such as import and export.

How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

2020 ◽  
Vol 14 (3) ◽  
pp. 253-284
Author(s):  
Ranjan Kumar Mohanty ◽  
Sidheswar Panda
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Public Debt ◽  
Positive Impact ◽  
Decomposition Analysis ◽  
Structural Var ◽  
Adverse Impact ◽  
Mixed Effect ◽  
Domestic Debt ◽  
The Impact

The study investigates the macroeconomic effects of public debt in India during 1980–2017 using a structural vector autoregression framework. The objective is to examine the impact of public debt on the interest rate, investment, inflation and economic growth in India. The results of the impulse response functions show that public debt has an adverse impact on economic growth but a positive impact on the long-term interest rate in the short run and a mixed effect (both negative and positive) on investment and inflation. We also find that domestic debt has a more adverse impact on the economy than external debt. The estimated variance decomposition analysis finds that much of the variation in selected macro variables are explained by public debt and growth in India. This study suggests that public debt especially domestic debt should be controlled and channelled productively to have a favourable impact on the economy. JEL Classification: H63, O40, C40

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