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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.

Suggested Citation

  • Preston J. Miller & William Roberds, 1989. "How little we know about budget policy effects," Staff Report 120, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmsr:120
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    References listed on IDEAS

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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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