Measuring effectiveness of fiscal policy in OECD countries
The paper discusses the measurement of fiscal policy effects in the OECD/EU countries. The analysis is based on a simple VAR model for output growth, inflation and a fiscal indicator. Empirical analyses with data from 21 OECD countries for 1960-1996 show that fiscal policy effects differ considerably between EU countries. The core EMU countries do not seem to include France and Spain.