How little we know about budget policy effects
AbstractUsing a simple model, we show why previous empirical studies of budget policy effects are flawed. Due to an identification problem, those studies’ findings can be shown to be consistent with either policies mattering or not.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Minneapolis in its series Staff Report with number 120.
Date of creation: 1989
Date of revision:
Publication status: Published in Quarterly Review (Vol 16, Num 1, Winter 1992, pp. 2-11)
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