Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Fiscal Shocks And Asymmetric Effects
Download Fiscal Shocks And Asymmetric Effects full books in PDF, epub, and Kindle. Read online Fiscal Shocks And Asymmetric Effects ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Fiscal Shocks and Asymmetric Effects by : Ioannis Pragidis
Download or read book Fiscal Shocks and Asymmetric Effects written by Ioannis Pragidis and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We empirically test the effects of unanticipated fiscal policy shocks on the growth rate and the cyclical component of real private output and reveal different types of asymmetries in fiscal policy implementation. The data used are quarterly U.S. observations over the period 1967:1 to 2011:4. In doing so, we use both a vector autoregressive and the novel support vector machines systems in order to extract the fiscal policy shocks series. The latter has never been used before in a similar macroeconomic setting. Within our research framework, in order to test the robustness of our results to alternative aggregate money supply definitions we use two alternative moentary aggregates. These are the commonly reported by central banks and policy makers simple sum monetary aggregates at the MZM level of aggregation and the alternative CFS Divisia MZM aggregate. From each of these four systems we extracted four types of shocks: a negative and a positive government spending shock and a negative and a positive government revenue shock. These eight different types of unanticipated fiscal policy shocks are next used to empirically examine their effects on the growth rate and the cyclical component of real private GNP in two sets of regressions: one that assumes only contemporaneous effects of the shocks on output and one that is augmented with four lags of each fiscal shock.
Book Synopsis The Asymmetric Effects of Financial Frictions by : The Asymmetric Effects of Financial Frictions
Download or read book The Asymmetric Effects of Financial Frictions written by The Asymmetric Effects of Financial Frictions and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic variables are known to move asymmetrically over the business cycle: quickly and sharply during crises, but slowly and gradually during recoveries. Not known is the fact that this asymmetry is stronger in countries with less-developed financial systems. This new fact is documented using cross-country data on loan interest rates, investment, and output. The fact is then explained using a learning model with endogenous flows of information about economic conditions. Asymmetry is shown to be stronger in less-developed countries because these countries have greater financial frictions, which are captured in the model by higher monitoring and bankruptcy costs. These greater frictions magnify the crisis reactions of lending rates and economic activity to shocks and then delay their recovery by restricting the generation of information after the crisis. Empirical evidence and a quantitative exploration of the model show that this explanation is consistent with the data.
Book Synopsis The Asymmetric Effects of Government Spending Shocks by : Hakan Berument
Download or read book The Asymmetric Effects of Government Spending Shocks written by Hakan Berument and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to assess if expansionary and contractionary government spending shocks have an asymmetric effect for Turkish economy. Keynesian theory suggests that increase in government spending stimulate aggregate demand and increases output. However, there might be asymmetry for the effect of fiscal policy on economic outcome due to stickiness of prices, perception of changes (permanent versus transitory) and nearness to full employment. This paper assesses this asymmetry for Turkey by using quarterly data from 1987:I to 2001:I. The empirical evidence reported here reveals that private consumption and investment decrease in the face of expansionary government spending shocks; however, they either do not change or decrease very little under contractionary government spending shocks.
Book Synopsis Asymmetric Shocks in a Currency Union with Monetary and Fiscal Handcuffs? by : Christopher J. Erceg
Download or read book Asymmetric Shocks in a Currency Union with Monetary and Fiscal Handcuffs? written by Christopher J. Erceg and published by DIANE Publishing. This book was released on 2011-04 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the impact of the asymmetric shocks within a currency union in a framework that takes account of the zero bound constraint on policy rates, and also allows for constraints on fiscal policy. In this environment, the authors document that the usual optimal currency argument showing that the effects of shocks are mitigated to the extent that they are common across member states can be reversed. Countries can be worse off when their neighbors experience similar shocks, including policy-driven reductions in government spending. Charts and tables. This is a print on demand edition of an important, hard-to-find publication.
Book Synopsis Business Cycles, Economic Crises, and the Poor by : Pierre-Richard Agénor
Download or read book Business Cycles, Economic Crises, and the Poor written by Pierre-Richard Agénor and published by World Bank Publications. This book was released on 2001 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The Asymmetric Effects of Financial Frictions by : Guillermo Ordoñez
Download or read book The Asymmetric Effects of Financial Frictions written by Guillermo Ordoñez and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Economic variables are known to move asymmetrically over the business cycle: quickly and sharply during crises, but slowly and gradually during recoveries. Not known is the fact that this asymmetry is stronger in countries with less-developed financial systems. This new fact is documented using cross-country data on loan interest rates, investment, and output. The fact is then explained using a learning model with endogenous flows of information about economic conditions. Asymmetry is shown to be stronger in less-developed countries because these countries have greater financial frictions, which are captured in the model by higher monitoring and bankruptcy costs. These greater frictions magnify the crisis reactions of lending rates and economic activity to shocks and then delay their recovery by restricting the generation of information after the crisis. Empirical evidence and a quantitative exploration of the model show that this explanation is consistent with the data
Book Synopsis Asymmetric Effects of Financial Volatility and Volatility-of-volatility Shocks on the Energy Mix by : Laurentiu Guinea
Download or read book Asymmetric Effects of Financial Volatility and Volatility-of-volatility Shocks on the Energy Mix written by Laurentiu Guinea and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Boom-Bust Cycle, Asymmetrical Fiscal Response and the Dutch Disease by : Mr.Rabah Arezki
Download or read book Boom-Bust Cycle, Asymmetrical Fiscal Response and the Dutch Disease written by Mr.Rabah Arezki and published by International Monetary Fund. This book was released on 2010-04-01 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the behavior of expenditure policy during boom-bust in commodity price cycles, and its implication for real exchange rate movements. To do so, we introduce a Dutch disease model with downward rigidities in government spending to revenue shock. This model leads to a decoupling between real exchange rate and commodity price movement during busts. We test our model's theoretical predictions and underlying assumptions using panel data for 32 oil-producing countries over the period 1992 to 2009. Results are threefold. First, we find that change in current spending have a stronger impact on the change in real exchange rate compared to capital spending. Second, we find that current spending is downwardly sticky, but increases in boom time, and conversely for capital spending. Third, we find limited evidence that fiscal rules have helped reduce the degree of responsiveness of current spending during booms. In contrast, we find evidence that fiscal rules are associated with a significant reduction in capital expenditure during busts while responsiveness to boosts is more muted. This raises concerns about potential adverse consequences of this asymmetry on economic performance in oil-producing countries.
Book Synopsis Asymmetric Effects of Monetary Policy by : Tiff Macklem
Download or read book Asymmetric Effects of Monetary Policy written by Tiff Macklem and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent empirical studies examining the asymmetric effects of monetary shocks on economic activity do not systematically control for the non-monetary sources of fluctuations as well as the endogenous component of monetary policy. The evidence of asymmetry could simply reflect the failure to control for these omitted factors. In this paper, we reconsider the asymmetric effects of monetary shocks in the context of a small open economy using information from the yield curve to measure the stance of domestic monetary policy, while allowing both real and monetary foreign shocks to have asymmetric effects on output. Our principal finding is that while controlling for foreign factors dampens the asymmetry in the effects of exogenous domestic monetary shocks, there is nonetheless strong evidence of asymmetry when the effects of the exogenous and systematic components of the yield spread are considered jointly. We find no evidence of asymmetry in the effects of real factors.
Book Synopsis Asymmetric Effects of Government Spending by : Woon Gyu Choi
Download or read book Asymmetric Effects of Government Spending written by Woon Gyu Choi and published by . This book was released on 2005 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Asymmetric Impacts of Oil Price Shocks on Government Expenditures by : Hany Abdel-Latif
Download or read book Asymmetric Impacts of Oil Price Shocks on Government Expenditures written by Hany Abdel-Latif and published by . This book was released on 2018 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Saudi Arabia, a major oil exporting country, adopted an ambitious plan known as 2030 Vision to diversify its economy through dramatic increases in domestic investment. However, with oil remaining at modest to low prices by recent historical standards, it is important to study the implications of oil price negative shocks to key macroeconomic variables. This paper investigates the effect of oil price shocks on government expenditures. By allowing for the theoretical plausibility of asymmetric effects of oil price shocks on fiscal policy, our research suggests that nothing can guarantee linearity of the impacts of oil prices positive and negative shocks to government expenditures. For this purpose, we use a quarterly dataset 1990Q-2017Q2 on government expenditures on health and education sectors, and apply a non-linear autoregressive distributed lag (NARDL) model. Our key findings show evidence of a non-linear relationship between oil prices and government expenditures in Saudi Arabia, where a negative oil price shock would have a statistically significant different impact in the long run compared to a positive shock. Finally, we build upon our empirical findings and draw some policy recommendations for the 2030 Vision.
Book Synopsis Financial Markets, Asymmetric Information, and Macroeconomic Equilibrium by : Fabrizio Mattesini
Download or read book Financial Markets, Asymmetric Information, and Macroeconomic Equilibrium written by Fabrizio Mattesini and published by Dartmouth Publishing Company. This book was released on 1993 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study of the interaction between the financial sector and the sector of the economy is one of the most recent advances in macroeconomic theory. While mainstream economics assigns a passive role to the financial sector there is a growing body of literature which emphasizes the importance of financial intermediaries in explaining fluctuations and the determination of the process through which monetary policy impulses are transmitted to the rest of the economy. This literature has its origin in the models that rely on asymmetric information to explain imperfections in financial markts and in empirical evidence collected through various econometric techniques and through historical studies. This book surveys the relevant work ion the subject, evaluates the empirical evidence and the explanatory power of the theories proposed and furnishes new and empirical results.
Book Synopsis Government Deficit Shocks and Okun's Coefficient Volatility by : Binh Thai Pham
Download or read book Government Deficit Shocks and Okun's Coefficient Volatility written by Binh Thai Pham and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper connects two salient economic features: (i) Fiscal shocks have asymmetric effects across business cycle phases (Gechert et al., 2019); (ii) Okun's coefficient is time varying and may be unstable. The intertwined dynamic behavior of fiscal shocks and unemployment-output trade-offs are studied in this paper using state-of-the-art TVP-VAR modelling techniques applied to the analysis of six selected economies: France, Japan, Spain, Sweden, the United Kingdom (UK), and the Unites States of America (USA). We confirm the heterogeneity of Okun's coefficient across country, and its time-varying nature across time, showing in addition its fluctuation around a reference long-run value. We document a significant short-run impact of fiscal shocks on Okun's trade-off which, based on the experience of the Global Financial Crisis, becomes larger in periods of economic turmoil. Okun's coefficient is most volatile in Spain and most stable in Sweden and Japan, with France, UK and USA in between. Policy wise, we claim that austerity policies may have unexpected adverse effects on job creation if implemented during slumps, precisely when the labor market sensitivity with respect to the performance of the product market is likely to be more acute.
Book Synopsis Asymmetric Effects of Money-supply Shocks on Real Output and Prices by : Pik-ki Lai
Download or read book Asymmetric Effects of Money-supply Shocks on Real Output and Prices written by Pik-ki Lai and published by . This book was released on 1993 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The Asymmetric Effects of Deflationary Monetary Shocks by : Arthur Ernest Gandolfi
Download or read book The Asymmetric Effects of Deflationary Monetary Shocks written by Arthur Ernest Gandolfi and published by . This book was released on 1993 with total page 122 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Effects of Fiscal Shocks in a Globalized World by : Alan J. Auerbach
Download or read book Effects of Fiscal Shocks in a Globalized World written by Alan J. Auerbach and published by . This book was released on 2015 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: While theoretical models consistently predict that government spending shocks should lead to appreciation of the domestic currency, empirical studies have been stubbornly finding depreciation. Using daily data on U.S. defense spending (announced and actual payments), we document that the dollar immediately and strongly appreciates after announcements about future government spending. In contrast, actual payments lead to no discernible effect on the exchange rate. We examine responses of other variables at the daily frequency and explore how the response of the exchange rate to fiscal shocks varies over the business cycle as well as at the zero lower bound and in normal times.
Book Synopsis Fiscal Policy, Monetary Policy and the Transmission Mechanism of Shocks by : Jasmine Shuwei Zheng
Download or read book Fiscal Policy, Monetary Policy and the Transmission Mechanism of Shocks written by Jasmine Shuwei Zheng and published by . This book was released on 2013 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis focuses on the three central themes that have dominated the world economy in recent decades. First, in each of the localized financial crises that have taken place in the world economy, policymakers around the world have reduced policy interest rates to help stimulate the economy. The recent subprime mortgage crisis and the subsequent Great Recession resulted in the reduction of policy interest rates in many advanced economies to historically low levels. Second, governments around the world have implemented huge fiscal stimulus packages. Third, emerging market economies and countries such as Australia, with close trade linkages to China, have remained resilient. The severity of the crisis of 2007-2011 and the resilience displayed by some economies have resulted in renewed interest among policymakers in investigating the transmission mechanism channels of economic shocks, fiscal and monetary policies. There are three main objectives in this thesis. The first objective is to examine the impact of fiscal and monetary policies on the US economy. Chapter 2 uses the Factor Augmented Vector Autoregression (FAVAR) methodology to estimate the impact of fiscal and monetary policy shocks on the US economy. The second objective of the thesis is to investigate the asymmetry in the effects of conventional monetary policy on the economy dependent on financial stress conditions. A Threshold Vector Autoregression (TVAR) model is used to analyze the effects of monetary policy on the US economy during periods of low and high financial stress, specifying a financial stress index as the threshold variable. The third objective of the thesis is to study the transmission of economic shocks from the US and Chinese economies to the Australian economy. Chapter 4 in this thesis uses a FAVAR approach and a large dataset of 414 macroeconomic variables to analyze the international transmission mechanisms between the Australian economy and the US and Chinese economies. Overall, this thesis finds evidence suggesting that fiscal and monetary policies can be effective and potent in helping the US economy recover from a financial crisis. This thesis finds that government spending plays an important role compared to other policy levers. The effects of a government spending shock last for a longer period of time and explain more variability in the macroeconomic variables in the US economy, with some crowding-out effects in the medium term. Analyzing the impact of monetary policy on the US economy in during financial regimes provides further insights. The impact of monetary policy on the US economy is found to be greater during periods of high financial stress when the size of the shock is larger. There is also evidence of a cost channel effect during periods of high financial stress which suggests that there is a short run inflation-output trade off during financial crises. The FAVAR model developed to analyze the international transmission of economic shocks from the US and China to Australia suggests that the US economy continues to play an important role in the Australian economy, despite the increase in trade linkages between Australia and China.
