Empirical Analysis of the Effect of Fiscal Policy Shocks in China
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Jia Ji
Abstract
The central issues concerning fiscal policy makers include macroeconomic stability and growth stimulation. The policy decision process is facilitated by investigation on the effects of fiscal policy, such as a change in government spending or taxes on macroeconomic variables comprising inflation, aggregate output, and interest rates. Build on the Blanchard-Perotti identification approach, this paper empirically analyses the influence of fiscal policy to aggregate economic activities in China, and the estimated results are compared between China and the advanced economies. The findings demonstrate that the impulse responses incurred by tax shocks are generally stimulative, although government spending shocks tend to be neutral, revealing meaningful implications for the fiscal space and policy design.
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Articles in the same Issue
- Frontmatter
- Editors Note
- Editor’s Note
- Special on COVID-19 Research
- Covid-19 Response Models and Divergences Within the EU: A Health Dis-Union
- Landscape Political Ecology: Rural-Urban Pattern of COVID-19 in Nigeria
- The Relationship Between Poverty and COVID-19 Infection and Case-Fatality Rates in Germany during the First Wave of the Pandemic
- Covid-19: A Trade-off between Political Economy and Ethics
- Special on Inequality, Policy and Society
- Causes and Consequences of Income Inequality – An Overview
- Monetary Policy and the Top 10%: A Time-Series Analysis Using ARDL and ECM
- Trade Intensity, Fiscal Integration and Income Inequality in ECOWAS
- Empirical Analysis of the Effect of Fiscal Policy Shocks in China
- The Political Economy of Sectoral Credit Provisioning in India: An Empirical Analysis
- Perspectives on Gender Stereotypes: How Did Gender-Based Perceptions Put Hillary Clinton at an Electoral Disadvantage in the 2016 Election?
