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Methodology

In: Why Fiscal Stimulus Programs Fail, Volume 2

Author

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  • John J. Heim

    (State University of New York)

Abstract

This chapter reviews the structural regression model methodology used to evaluate whether deficit-financed fiscal stimulus programs consumer and business spending, and whether accommodate monetary policy or endogenous loanable funds growth can offset the problem. Standard methods are used to avail stationarity, endogeneity, heteroscedasticity, and multicollinearity problems. All initial findings for a model tested in one period of time are retested in 5–17 other time periods to ensure findings are not spurious. Extensive discussion of methods used to offset problems interpreting model results when both crowd out and crowd in years occur in the same sample, and when periods in which little change government spending or taxes are tested.

Suggested Citation

  • John J. Heim, 2021. "Methodology," Springer Books, in: Why Fiscal Stimulus Programs Fail, Volume 2, chapter 0, pages 41-78, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-64727-8_3
    DOI: 10.1007/978-3-030-64727-8_3
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