Post-crisis Expansionary Fiscal Contraction

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F19%3A10244183" target="_blank" >RIV/61989100:27510/19:10244183 - isvavai.cz</a>

Výsledek na webu

<a href="http://dokbat.utb.cz/wp-content/uploads/2020/01/DOKBAT_2019_Conference_Proceedings.pdf" target="_blank" >http://dokbat.utb.cz/wp-content/uploads/2020/01/DOKBAT_2019_Conference_Proceedings.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.7441/dokbat.2019.084" target="_blank" >10.7441/dokbat.2019.084</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Post-crisis Expansionary Fiscal Contraction

Popis výsledku v původním jazyce

Aim of this paper is to empirically verify theory of expansionary fiscal contractions. Basis of this theory is that fiscal consolidation can have non-Keynesian effects, i.e. budget constraints will not lead to drop in private consumption and investment, on the contrary, it will lead to rise of this economic index. This theory can be examined by several approaches. In this study, it will be done by using econometric methods, namely panel regression, using fixed effects ordinary least squares. As title suggests, this analysis is focused on years following the financial and economic crisis in years 2008 and 2009 respectively. Some countries used this approach in post-crisis years to stimulate consumption, investment and economic growth. Study examines 28 countries of European Union between years 2009-2018. Results show, that both, private consumption and investment react more to economic development, than to administrative changes, made by governments to influence economic agents&apos; behaviour. Households and firms react very little or not at all to these impulses. If government still makes this effort to change behaviour, they should focus on changing taxes in spite of other fiscal policy instruments, such as transfer payments. Furthermore, it was not concluded, that households and firms follow this non-Keynesian effect. Periods with fiscal contractions didn&apos;t have unexpected results by standard Keynesian theory.

Název v anglickém jazyce

Post-crisis Expansionary Fiscal Contraction

Popis výsledku anglicky

Aim of this paper is to empirically verify theory of expansionary fiscal contractions. Basis of this theory is that fiscal consolidation can have non-Keynesian effects, i.e. budget constraints will not lead to drop in private consumption and investment, on the contrary, it will lead to rise of this economic index. This theory can be examined by several approaches. In this study, it will be done by using econometric methods, namely panel regression, using fixed effects ordinary least squares. As title suggests, this analysis is focused on years following the financial and economic crisis in years 2008 and 2009 respectively. Some countries used this approach in post-crisis years to stimulate consumption, investment and economic growth. Study examines 28 countries of European Union between years 2009-2018. Results show, that both, private consumption and investment react more to economic development, than to administrative changes, made by governments to influence economic agents&apos; behaviour. Households and firms react very little or not at all to these impulses. If government still makes this effort to change behaviour, they should focus on changing taxes in spite of other fiscal policy instruments, such as transfer payments. Furthermore, it was not concluded, that households and firms follow this non-Keynesian effect. Periods with fiscal contractions didn&apos;t have unexpected results by standard Keynesian theory.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

DOKBAT : 15th Annual International Bata Conference for Ph.D. Students and Young Researchers : conference proceedings

ISBN

978-80-7454-893-2

ISSN

—

e-ISSN

—

Počet stran výsledku

6

Strana od-do

879-884

Název nakladatele

Univerzita Tomáše Bati ve Zlíně

Místo vydání

Zlín

Místo konání akce

Zlín

Datum konání akce

6. 11. 2019

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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