scholarly journals Exploring the Output Effect of Fiscal Policy Shocks in Low Income Countries

2020 ◽  
Author(s):  
Jiro Honda ◽  
Hiroaki Miyamoto ◽  
Mina Taniguchi
Keyword(s):  
Fiscal Policy ◽  
Low Income ◽  
Low Income Countries ◽  
Output Effect ◽  
Policy Shocks

scholarly journals Exploring the Output Effect of Fiscal Policy Shocks in Low Income Countries

2020 ◽  
Vol 20 (12) ◽  
Author(s):  
Jiro Honda ◽  
Hiroaki Miyamoto ◽  
Mina Taniguchi
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Low Income ◽  
Exchange Rate Regime ◽  
Structural Characteristics ◽  
Empirical Studies ◽  
Low Income Countries ◽  
Output Effect ◽  
State Of The Economy ◽  
Spending Shocks

What do we know about the output effects of fiscal policy in low income countries (LICs)? There are very few empirical studies on the subject. This paper fills this gap by estimating the output effects of government spending shocks in LICs. Our analysis—based on the local projection method—finds that the output effects in LICs are markedly lower than those in AEs and marginally smaller than those in EMs. We also find that in LICs, the output effects are larger (i) during recessions; (ii) under a fixed exchange rate regime; and/or (iii) with higher quality of institutions. Our analysis could not confirm any statistically significant output effect under floating exchange rate regimes. For the estimation of the output effects of fiscal spending shocks, it is thus important to consider the state of the economy and the country’s structural characteristics. Our results imply that the output costs of fiscal adjustment in LICs may not be as large as previously thought, especially if adopted outside of a recession, based on cutting public consumption, and accompanied by reform to enhance institutions.

Designing Monetary and Fiscal Policy in Low-Income Countries

2006 ◽  
Author(s):  
Jan Martijn ◽  
Gabriel Di Bella ◽  
Shamsuddin Tareq ◽  
Benedict Clements ◽  
Abebe Aemro Selassie ◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Low Income ◽  
Low Income Countries ◽  
Monetary And Fiscal Policy

scholarly journals Growth, Governance, and Fiscal Policy Transmission Channels in Low-Income Countries

2003 ◽  
Vol 03 (237) ◽  
pp. 1
Author(s):  
Naoko C. Kojo ◽  
Arye L. Hillman ◽  
Emanuele Baldacci ◽  
◽  
◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Low Income ◽  
Low Income Countries ◽  
Transmission Channels ◽  
Policy Transmission

Monetary and Fiscal Policy Design Issues in Low-Income Countries

Policy Papers ◽  
2005 ◽  
Vol 2005 (46) ◽  
Author(s):  
Keyword(s):  
Fiscal Policy ◽  
Low Income ◽  
Policy Design ◽  
Low Income Countries ◽  
Design Issues ◽  
Macroeconomic Imbalances ◽  
Monetary And Fiscal Policy

Considers possible adjustments in the design of Fund-supported programs, drawing on the experience of low-income countries that have successfully addressed the most apparent domestic macroeconomic imbalances.

Fiscal policy, expenditure composition, and growth in low-income countries

2005 ◽  
Vol 24 (3) ◽  
pp. 441-463 ◽  
Author(s):  
Sanjeev Gupta ◽  
Benedict Clements ◽  
Emanuele Baldacci ◽  
Carlos Mulas-Granados
Keyword(s):  
Fiscal Policy ◽  
Low Income ◽  
Low Income Countries

Fiscal Policy over the Election Cycle in Low-Income Countries

2013 ◽  
Vol 13 (153) ◽  
pp. 1 ◽  
Author(s):  
Christian Ebeke ◽  
Dilan Ölçer ◽  
◽  
Keyword(s):  
Fiscal Policy ◽  
Low Income ◽  
Low Income Countries ◽  
Election Cycle
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