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Contractionary effects of expansionary fiscal policy: theory and tests

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  • Ahtiala, Pekka
  • Kanto, Antti

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  • Ahtiala, Pekka & Kanto, Antti, 2002. "Contractionary effects of expansionary fiscal policy: theory and tests," Economic Modelling, Elsevier, vol. 19(1), pages 137-152, January.
    • Handle: RePEc:eee:ecmode:v:19:y:2002:i:1:p:137-152
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    1. Bertola, Giuseppe & Drazen, Allan, 1993. "Trigger Points and Budget Cuts: Explaining the Effects of Fiscal Austerity," American Economic Review, American Economic Association, vol. 83(1), pages 11-26, March.
    2. Francesco Giavazzi & Marco Pagano, 1990. "Can Severe Fiscal Contractions Be Expansionary? Tales of Two Small European Countries," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 75-122, National Bureau of Economic Research, Inc.
    3. Karras, Georgios, 1994. "Government Spending and Private Consumption: Some International Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(1), pages 9-22, February.
    4. Haug, Alfred A & Lucas, Robert F, 1996. "Long-Run Money Demand in Canada: In Search of Stability," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 345-348, May.
    5. Gordon, Robert J, 1988. "The Role of Wages in the Inflation Process," American Economic Review, American Economic Association, vol. 78(2), pages 276-283, May.
    6. Freedman, C, 1983. "Financial Innovation in Canada: Causes and Consequences," American Economic Review, American Economic Association, vol. 73(2), pages 101-106, May.
    7. Miller, Stephen M., 1990. "Disequilibrium macroeconomics, money as a buffer stock and the estimation of money demand," Journal of Macroeconomics, Elsevier, vol. 12(4), pages 563-586.
    8. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    9. Jeffrey Sachs, 1980. "Wages, Flexible Exchange Rates, and Macroeconomic Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 731-747.
    10. Paul M. Boothe & Stephen S. Poloz, 1988. "Unstable Money Demand and the Monetary Model of the Exchange Rate," Canadian Journal of Economics, Canadian Economics Association, vol. 21(4), pages 785-798, November.
    11. Scarth, William M., 1979. "Bond financed fiscal policy and the problem of instrument instability," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 107-117.
    12. Ahtiala, Pekka, 1984. "A synthesis of the macroeconomic approaches to exchange rate determination," European Economic Review, Elsevier, vol. 24(2), pages 117-136, March.
    13. Kohn, Meir & Manchester, Joyce, 1985. "International evidence on misspecification of the standard money demand equation," Journal of Monetary Economics, Elsevier, vol. 16(1), pages 87-94, July.
    14. Ahtiala, Pekka, 1989. "A note on fiscal policy under flexible exchange rates," European Economic Review, Elsevier, vol. 33(7), pages 1481-1486, September.
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    Cited by:

    1. Pekka Ahtiala & Juha Junttila, 2020. "Finland’s great depression of the 1990s: Lessons about financial reform based on econometric macro evidence," Review of Financial Economics, John Wiley & Sons, vol. 38(S1), pages 188-209, March.
    2. Afonso, António & Alves, José & Jalles, João Tovar, 2022. "The (non-)Keynesian effects of fiscal austerity: New evidence from a large sample," Economic Systems, Elsevier, vol. 46(2).
    3. Afonso, António & Jalles, João Tovar, 2014. "Assessing fiscal episodes," Economic Modelling, Elsevier, vol. 37(C), pages 255-270.

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