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How little we know about budget policy effects

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  • Preston J. Miller
  • William Roberds

Abstract

Using 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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Suggested Citation

  • Preston J. Miller & William Roberds, 1989. "How little we know about budget policy effects," FRB Atlanta Working Paper 89-4, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:89-4
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    References listed on IDEAS

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    1. Abel, Andrew B & Bernheim, B Douglas, 1991. "Fiscal Policy with Impure Intergenerational Altruism," Econometrica, Econometric Society, vol. 59(6), pages 1687-1711, November.
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    Cited by:

    1. Khalid, Ahmed M., 1996. "Ricardian equivalence: Empirical evidence from developing economies," Journal of Development Economics, Elsevier, vol. 51(2), pages 413-432, December.

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    Keywords

    Budget deficits;

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