Research on the Dynamic Feedback Mechanism of Fiscal Policy Regulation Under Covid-19

Evidence From China

Bibliographic Data

ID22079475
AuthorsShu Wang (0009-0009-1730-2316, Jilin University of Finance and Economics), Henan Gao (Jilin University of Finance and Economics), Baicheng Zhou (0000-0001-7165-6419, Jilin University of Finance and Economics, corresponding author)
Year2022
Volume10
Pages931135-931135
Publication date2022-07-05
Open AccessYes
TypeARTICLE
VenueFrontiers in Public Health (JOURNAL)
Journal identifiersISSN: 2296-2565 • E-ISSN: 2296-2565
PublisherFrontiers Media SA (PUBLISHER • CH)
DOI10.3389/fpubh.2022.931135
PMID35865240
OpenAlexW4284685749
LanguageEN
References cited24

The repeated outbreak of COVID-19 epidemic has brought a heavy blow to the world economy. Fiscal policy is one of the important macro-control measures to pull the economy out of the quagmire, and it is necessary to study the implementation of fiscal policy under the epidemic. Due to the relatively abundant resources of the Chinese government, this study uses China as the research object to study the orientation of fiscal policy under COVID-19 epidemic. We use fiscal policies and a large amount of macroeconomic data to identify fiscal policy and macroeconomic regulation's dynamic mechanism in China. Our findings indicate a dynamic feedback relationship between expenditure-based and revenue-based fiscal policy tools, output gaps, and deficit scales. Before the global economic crisis, fiscal policy can play a good role in adversely regulating the economy, and the difficulty of adjustment after the crisis has increased significantly. During COVID-19 epidemic, the interaction time between variables related to fiscal policy increased, suggesting that the implementation of fiscal policy during the epidemic should be particularly cautious

China · Decentralization · Economics · fiscal federalism · Fiscal imbalance · Fiscal policy · Fiscal union · Government revenue · Macroeconomics · Market economy · Political science · Revenue · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact · Finance

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Open DOIOpen Access