Asymmetric Effects of Government Spending: Does the Level of Real Interest Rates Matter?
This paper empirically explores how fiscal policy (represented by increases in government spending) has asymmetric effects on economic activity at different levels of real interest rates. It suggests that the effect of fiscal policy depends on the level of real rates, since the Ricardian effect is s...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2005
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Schriftenreihe: | IMF Working Papers
Working Paper No. 05/7 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper empirically explores how fiscal policy (represented by increases in government spending) has asymmetric effects on economic activity at different levels of real interest rates. It suggests that the effect of fiscal policy depends on the level of real rates, since the Ricardian effect is smaller at lower financing costs of fiscal policy. Using threshold regression models on U.S. data, the paper provides new evidence that expansionary government spending is more conducive to short-run growth when real rates are low. It also finds asymmetric effects on interest rates and inflation, and threshold effects associated with substitution between financing methods |
Beschreibung: | 1 Online-Ressource (36 p) |
ISBN: | 1451860269 9781451860269 |
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spelling | Choi, Woon Gyu Verfasser aut Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? Choi, Woon Gyu Washington, D.C International Monetary Fund 2005 1 Online-Ressource (36 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 05/7 This paper empirically explores how fiscal policy (represented by increases in government spending) has asymmetric effects on economic activity at different levels of real interest rates. It suggests that the effect of fiscal policy depends on the level of real rates, since the Ricardian effect is smaller at lower financing costs of fiscal policy. Using threshold regression models on U.S. data, the paper provides new evidence that expansionary government spending is more conducive to short-run growth when real rates are low. It also finds asymmetric effects on interest rates and inflation, and threshold effects associated with substitution between financing methods Online-Ausg Devereux, Michael B. Sonstige oth http://elibrary.imf.org/view/IMF001/00459-9781451860269/00459-9781451860269/00459-9781451860269.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Choi, Woon Gyu Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? |
title | Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? |
title_auth | Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? |
title_exact_search | Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? |
title_exact_search_txtP | Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? |
title_full | Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? Choi, Woon Gyu |
title_fullStr | Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? Choi, Woon Gyu |
title_full_unstemmed | Asymmetric Effects of Government Spending Does the Level of Real Interest Rates Matter? Choi, Woon Gyu |
title_short | Asymmetric Effects of Government Spending |
title_sort | asymmetric effects of government spending does the level of real interest rates matter |
title_sub | Does the Level of Real Interest Rates Matter? |
url | http://elibrary.imf.org/view/IMF001/00459-9781451860269/00459-9781451860269/00459-9781451860269.xml |
work_keys_str_mv | AT choiwoongyu asymmetriceffectsofgovernmentspendingdoesthelevelofrealinterestratesmatter AT devereuxmichaelb asymmetriceffectsofgovernmentspendingdoesthelevelofrealinterestratesmatter |