Measuring fiscal spillovers in EMU and beyond

A Global VAR approach

Bibliographic Data

ID10492186
AuthorsAnsgar Belke (0000-0002-9743-4758, University of Duisburg-Essen, corresponding author), Thomas Osowski (University of Duisburg-Essen), Thomas U Osowski (University of Duisburg-Essen)
Year2019
Volume66
Issue1
Pages54-93
Publication date2019-01-03
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueScottish Journal of Political Economy (JOURNAL)
Journal identifiersISSN: 0036-9292 • E-ISSN: 1467-9485
PublisherWiley (PUBLISHER • GB)
DOI10.1111/sjpe.12172
OpenAlexW2589210241
LanguageEN
Citations received5
References cited44

This paper identifies and measures fiscal spillovers in the EU countries empirically using a global vector autoregression (GVAR) model. Our aim was to look at the sign and the absolute values of fiscal spillovers in a countrywise perspective and at the time profile (impulse response) of the impacts of fiscal shocks. We find moderate spillover effects of fiscal policy shocks originating in Germany and France. However, there is significant variation regarding the magnitude of the spillovers on individual destination countries and country clusters. Furthermore, we find some evidence that German or French fiscal spillovers are stronger on EMU than on non‐EMU countries

Economics · Fiscal imbalance · Fiscal policy · Fiscal union · Government revenue · Government spending · International economics · Macroeconomics · Monetary economics · Monetary policy · Public finance · Revenue · Structural vector autoregression · Vector autoregression · Finance · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact

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