Stanova, Nadja - Volkswirtschaftliche Fakultät, … - 2015
This paper analyses in a VAR framework with debt feedback effects of fiscal policy over 1999q1-2013q4 in five Central … alternative specifications, a model without debt feedback, and a model with debt within the linear VAR. Omitting the debt feedback … interest rate. Simulated out-of-sample debt paths are stabilised if debt feedback is included, but strongly explosive otherwise. …