IDEAS home Printed from https://ideas.repec.org/p/ecj/ac2002/54.html
   My bibliography  Save this paper

Using structural balance data to test the fiscal theory of the price level: an application to France and the USA

Author

Listed:
  • Creel, JÈrÙme

    (OFCE, Research Dpt, Banque de France)

  • HervÈ Le Bihan

Abstract

The fiscal theory of the price level has recently received important attention as an alternative theory of price determination. Empirical tests of the FTPL have been rare, and have undergone forceful criticism by Cochrane (1998) based on ''observational equivalence'' arguments. This papers proposes two extensions to the empirics of the FTPL. First, we apply the methodology initiated by Canzoneri, Cumby and Diba (2001) to French data. Second, we use US and French structural balance data, in order to overcome Cochrane's critique. Our conclusion is that for neither country the data support a FTPL interpretation.

Suggested Citation

  • Creel, JÈrÙme & HervÈ Le Bihan, 2002. "Using structural balance data to test the fiscal theory of the price level: an application to France and the USA," Royal Economic Society Annual Conference 2002 54, Royal Economic Society.
    • Handle: RePEc:ecj:ac2002:54
    as

    Download full text from publisher

    File URL: http://repec.org/res2002/Creel.pdf
    File Function: full text
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:ac2002:54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.