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Finland: Selected Issues

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  • International Monetary Fund

Abstract

In light of potential changes in fiscal policy in Finland, the impact of changes in the fiscal stance on short-term economic growth is an issue of interest. This paper estimates the short-term impact of fiscal policy on growth in Finland. The estimates are based on a structural vector autoregression (SVAR) model. However, identifying the long-term impact of changes in labor taxes on employment and growth is not an easy task. Although fiscal policy influences GDP in the short-term, the impact remains small compared with results.

Suggested Citation

  • International Monetary Fund, 2003. "Finland: Selected Issues," IMF Staff Country Reports 2003/326, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2003/326
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=16946
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    Cited by:

    1. Andreas Billmeier, 2006. "Measuring a Roller Coaster: Evidence on the Finnish Output Gap," Finnish Economic Papers, Finnish Economic Association, vol. 19(2), pages 69-83, Autumn.
    2. Andreas Billmeier, 2009. "Ghostbusting: which output gap really matters?," International Economics and Economic Policy, Springer, vol. 6(4), pages 391-419, December.

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