Modelling the fiscal reaction functions of the GIPS based on state-varying thresholds

Gabriella Deborah Legrenzi; Costas Milas

We extend previous literature on fiscal policy sustainability by introducing non-linear fiscal reaction functions with endogenously estimated state-varying thresholds to capture the behaviour of fiscal policy authorities during "good" and "bad" times. These thresholds vary with the level of debt, the economic cycle and an index of financial pressure.

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Year of publication:	2013
Authors:	Legrenzi, Gabriella Deborah ; Milas, Costas
Publisher:	München : CESifo
Subject:	debt sustainability \| fiscal reaction function \| state-varying threshold \| Finanzpolitik \| Fiscal policy \| Öffentliche Schulden \| Public debt \| Schätzung \| Estimation \| Nachhaltigkeit \| Sustainability

Extent:	Online-Ressource (12 S.) graph. Darst.
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. 4385
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/84149 [Handle]
Classification:	C20 - Econometric Methods: Single Equation Models. General ; H30 - Fiscal Policies and Behavior of Economic Agents. General ; H50 - National Government Expenditures and Related Policies. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009792212