Leeper, Eric M.; Plante, Michael; Traum, Nora - Center for Applied Economics and Policy Research … - 2009
variety of specifica- tions of fiscal policy rules. We obtain several results. First, the best fitting model allows a rich set … of fiscal instruments to respond to stabilize debt. Second, responses of aggregate variables to fiscal policy shocks … responded strongly to government debt, while labor taxes have responded more weakly. Fourth, all components of the intertemporal …