Title:	Effects of fiscal policy shocks in CE3 countries (TVAR approach)
Authors:	Mirdala, Rajmund Kameník, Martin
Citation:	E+M. Ekonomie a Management = Economics and Management. 2017, č. 2, s. 46-64.
Issue Date:	2017
Publisher:	Technická univerzita v Liberci
Document type:	článek article
URI:	http://hdl.handle.net/11025/26261
ISSN:	2336-5604 (Online) 1212-3609 (Print)
Keywords:	fiskální politika;prahová hodnota VAR;strukturální šoky;fiskální multiplikátory;generalizovaná funkce impulsní odezvy
Keywords in different language:	fiscal policy;treshold VAR;structural shocks;fiskal multipliers;generalized impulse-response function
Abstract in different language:	The real output deterioration, high fi scal defi cits and increased sovereign debt burden represents key phenomena that affected the maneuverability of fi scal authorities in the early crisis years. Controversy between fi scal sustainability and fi scally driven economic recovery fueled a large number of academic and policy discussions about the appropriate response of governments to the crisis challenges. Empirical literature provides mixed evidence about the effects of fi scal policy adjustments on the macroeconomic performance. Moreover, pro-cyclical patterns in fi scal policies of many countries during the pre-crisis period did not reveal clear lessons learned that would be benefi cial for fi scal authorities during the crisis years. In the paper we examine effects of the fi scal policy shocks in CE3 (the Slovak Republic, the Czech Republic and Hungary) within different stages of the business cycle by employing threshold vector autoregression (TVAR) model. We calculate fi scal multipliers and generalized impulseresponse functions to assess the responsiveness of the real output to the fi scal policy adjustments. The main objective is to determine whether effects of the fi scal policy shocks differ during expansion and recession. Our results indicate that the size of fi scal multipliers and responsiveness of the real output are generally higher for spending fi scal shocks while effects of revenue fi scal shocks are much less dynamic in all three countries. While the effects of the fi scal spending shocks are more dynamic during recession in the Czech Republic and Hungary, fi scal spending multipliers in the Slovak Republic are generally high during the recession as well though higher during expansion. Moreover, differences in the responsiveness of the real output are slightly higher in case of the expenditure based fi scal adjustments in all three countries (in terms of both, regimes and subperiods).
Rights:	© Technická univerzita v Liberci CC BY-NC 4.0
Appears in Collections:	Číslo 2 (2017) Číslo 2 (2017)

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