Fiscal Regime Switches in Czech Economy: MS-VAR Approach
| Authors | |
|---|---|
| Year of publication | 2015 |
| Type | Article in Proceedings |
| Conference | 5th International Scientific Conference TAXES IN THE WORLD |
| MU Faculty or unit | |
| Citation | |
| Web | http://www.obalkyknih.cz/view?book_id=112141006 |
| Field | Economy |
| Keywords | Fiscal policy; Markov-Switching VAR |
| Description | This paper empirically investigates the regime switches of fiscal policy in the Czech Republic. By estimating the Markov-Switching vector-autoregressive model, the behavior of fiscal regimes is investigated. The main findings are summarized as follows. First, 2 regimes of fiscal policy were identified in the Czech Republic during the 21st century. Second, in one regime that occurred during the periods with the higher growth of the output, only the government spending impacts the output, and taxes have no impact on the output. In the periods with the lower growth of the output, the government spending has no impact on the output, and only taxes impact the output. |