Macroeconomic Effects of Fiscal Policies: Empirical Evidence from Bangladesh, China, Indonesia and the Philippines
AbstractThis paper studies macroeconomic effects of fiscal policies in four Asian countries - Bangladesh, China, Indonesia, and the Philippines - by means of structural macroeconometric model simulations. It is found that short-term fiscal multipliers from an untargeted increase in government expenditure are positive but much less than those from an increased expenditure targeted to capital spending. The multiplier effects from fiscal expansion via a tax rate reduction are found to be typically much less than through higher spending. The effectiveness of automatic stabilizers in general, and more specifically whether expenditure or tax-side stabilizer is more effective, differs across countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 564.
Date of creation: Sep 2006
Date of revision:
Fiscal policy; Growth; Public finance; Deficit;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-23 (All new papers)
- NEP-CBA-2006-09-23 (Central Banking)
- NEP-CNA-2006-09-23 (China)
- NEP-DEV-2006-09-23 (Development)
- NEP-MAC-2006-09-23 (Macroeconomics)
- NEP-PBE-2006-09-23 (Public Economics)
- NEP-SEA-2006-09-23 (South East Asia)
- NEP-TRA-2006-09-23 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cagas, Marie Anne & Ducanes, Geoffrey & Magtibay-Ramos, Nedelyn & Qin, Duo & Quising, Pilipinas, 2006. "A small macroeconometric model of the Philippine economy," Economic Modelling, Elsevier, vol. 23(1), pages 45-55, January.
- Ray Barrell & Dirk Willem te Velde, 2002. "European Integration and Manufactures Import Demand: An Empirical Investigation of Ten European Countries," German Economic Review, Verein für Socialpolitik, vol. 3(3), pages 263-293, 08.
- Barrell, Ray & Becker, Bettina & Byrne, Joseph & Gottschalk, Sylvia & Hurst, Ian & van Welsum, Desiree, 2004.
"Macroeconomic policy in Europe: experiments with monetary responses and fiscal impulses,"
Elsevier, vol. 21(5), pages 877-931, September.
- Ray Barrell & Bettina Becker & Joseph P Byrne & Sylvia Gottschalk & Ian Hurst & Desirée van Welsum, 2003. "Macroeconomic Policy in Europe: Experiments with monetary responses and fiscal impulses," NIESR Discussion Papers 218, National Institute of Economic and Social Research.
- Alan J. Auerbach & Daniel Feenberg, 2000.
"The Significance of Federal Taxes as Automatic Stabilizers,"
NBER Working Papers
7662, National Bureau of Economic Research, Inc.
- Alan J. Auerbach & Daniel R. Feenberg, 2000. "The Significance of Federal Taxes as Automatic Stabilizers," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 37-56, Summer.
- Anne Brunila & Marco Buti & Jan in 't Veld, 2002.
"Fiscal policy in Europe: how effective are automatic stabilisers?,"
European Economy - Economic Papers
177, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Anne Brunila & Marco Buti & Jan In 'T Veld, 2003. "Fiscal Policy in Europe: How Effective Are Automatic Stabilisers?," Empirica, Springer, vol. 30(1), pages 1-24, March.
- Sudip Ranjan Basu & Clovis Freire & Pisit Puapan & Vatcharin Sirimaneetham & Yusuke Tateno, . "Euro zone debt crisis: Scenario analysis and implications for developing Asia-Pacific," MPDD Working Paper Series WP/12/03, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
- Tang, Hsiao Chink & Liu, Philip & Cheung, Eddie C., 2010.
"Changing Impact of Fiscal Policy on Selected ASEAN Countries,"
Working Papers on Regional Economic Integration
70, Asian Development Bank.
- Tang, Hsiao Chink & Liu, Philip & Cheung, Eddie C., 2013. "Changing impact of fiscal policy on selected ASEAN countries," Journal of Asian Economics, Elsevier, vol. 24(C), pages 103-116.
- Fardoust, Shahrokh & Lin, Justin Yifu & Luo, Xubei, 2012. "Demystifying China's fiscal stimulus," Policy Research Working Paper Series 6221, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nick Vriend).
If references are entirely missing, you can add them using this form.