Empirical essays on fiscal policy and dept sustainability.
This thesis consists of four essays in empirical macroeconomics. What Are the Effects of Fiscal Policy Shocks? A VAR-Based Comparative Analysis The literature using structural vector autoregressions (SVARs) to assess the effects of fiscal policy shocks strongly disagrees on the qualitative and quantitative response of key macroeconomic variables.
This paper describes the empirical regularities relating fiscal policy variables, the level of development and the rate of growth. We employ historical data, recent cross-section data, and newly constructed public investment series.
This dissertation comprises three essays that examine critical aspects of fiscal policy and explores important determinants of tax compliance in a developing country context.
Firstly, empirical findings show that the precise effects of fiscal policy on the current account highly depend on some crucial factors. For instance, according to the intertemporal model (Obstfeld, Rogoff, 1995), if an increase in government expenditure happens, then the trade balance will be worse only when the increase is temporary.
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Chapter 2 analyzes the political economy of delayed agreements over fiscal reforms, in a setting where two interest groups can bargain over the allocation of the cost of the stabilization, using an alternating offers model. This contrasts with Alesina and Drazen (1991), where the group that concedes earlier bears a fixed disproportionate share of the burden.
This thesis comprises of four essays on fiscal policy and fiscal policy adjustment. The first of these essays, Chapter 2, reviews a wide range of literature about fiscal policy. This chapter also discusses the sudden stop and fiscal policy during sudden stops episodes. Chapter 3 constructs a simple dynamic deterministic model to study how the speed of adjustment to a sustainable level of debt.