The asymmetric effects of fiscal policy on inflation and economic activity in post-communist European countries

Asandului, Mircea; Lupu, Dan; Maha, Liviu-George; Viorică, Daniela

doi:10.1080/14631377.2020.1867430

Cited by 24 publications

(14 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Furthermore, the estimate parameter in the short run is significant as shown in Table 4 (see parameter C(4). In a general framework, recent studies confirmed the significance of public expenditure on inflation rates (Asandului et al, 2021), studied a set of post-communist European countries and showed the existence of asymmetric effects of public expenditure (generally fiscal policy) on inflation. In another set of countries, (Nguyen, 2019) analyzed the co-integration between public spending and inflation in China, India and Indonesia, the empirical findings showed a positive effect of public expenditure on inflation in India and Indonesia and a negative effect in China.…”

Section: Effects On the Rate Of Inflationmentioning

confidence: 94%

What Can SVAR Models Tell us About the Impact of Public Expenditure Shocks on Macroeconomic Variables in Algeria? A Slight Hint to the COVID-19 Pandemic

Fatih

2021

Folia Oeconomica Stetinensia

View full text Add to dashboard Cite

Research background: Public spending is a generator of economic growth as well as its components; this reality is more depicted in the era of the COVID-19 world pandemic where a recession in economic activities has touched all countries. Purpose: In this paper, we tried to study the impact of shocks in public expenditure on some macroeconomic variables in Algeria during the period (1970–2019). Research methodology: The VAR Structural models were used to study the response of these variables to shocks in public spending in Algeria. Results: The results of the modeling indicate a direct response of both exports and imports to a shock in the levels of public expenditure, but this response is relatively weak to the variable value of exports (especially in the short term), which is mainly due to the structure of the Algerian economy that is mainly dependent on the export of oil and gas, which in turn is mainly affected by international energy factors e.g. prices, supply, and demand. For the rate of inflation, there was an inverse response to shocks in the level of public spending. In the context of the global health and economic crisis, we will witness a further faltering of economic growth in Algeria. Novelty: Our contribution is a new feature of the application of the SVAR model in the era of the COVID-19 pandemic that focused on analyzing the impacts of public expenditure on exports and imports

show abstract

Section: Effects On the Rate Of Inflationmentioning

confidence: 94%

What Can SVAR Models Tell us About the Impact of Public Expenditure Shocks on Macroeconomic Variables in Algeria? A Slight Hint to the COVID-19 Pandemic

Fatih

2021

Folia Oeconomica Stetinensia

View full text Add to dashboard Cite

show abstract

“…( Asandului et al, 2021 , Baig et al, 2021 , Behera and Rath, 2021 , Boneva et al, 2018 , Jordà et al, 2015 , Long et al, 2022 , Lovcha and Perez-Laborda, 2018 , Musunuru and Jawed, 2022 , Njindan Iyke et al, 2007 , Prabheesh et al, 2003 , Rabanal and Quint, 2013 , Salisu et al, 2021 , Sharma and Sha, 2020 , Smets, 2018 )…”

Section: Uncited Referencesmentioning

confidence: 99%

COVID-19 policy actions and inflation targeting in South Asia

Rizvi

Pathirage²

2023

Journal of Asian Economics

View full text Add to dashboard Cite

“…Furthermore, Sharma and Mittal (2019) provide some evidence about the presence of an asymmetric connection between fiscal deficit and GDP in the short and long run based on the nonlinear ARDL model for India where, according to their findings, fiscal deficit harms GDP. Asandului et al (2020) estimate on a sample of twelve post-communist economies and asymmetric ARDL approach that cumulative impact of fiscal policy generates inflationary output effect for countries in their sample.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

What is the Nature of the Dynamics between Government Spending and Aggregate Output in the Nordic Countries?

Senekovič

2022

Naše Gospodarstvo/Our Economy

View full text Add to dashboard Cite

The main aim of this paper is to examine the relationship between government consumption and aggregate output in five Nordic countries in two different scenarios: first, in periods when government consumption increases and, second, in periods when government consumption decreases. Therefore, the nonlinear ARDL model is applied to test for the presence of a short-run and long-run asymmetry in output response to government consumption. The key findings are as follows. First, based on the linear model, a positive connection between government consumption and economic activity has been confirmed, both in the short and long term, which is also in line with the predictions of economic theory. Second, based on the nonlinear model, six out of ten short-term coefficients are statistically significant, as are six out of ten long-term coefficients, with statistically significant asymmetry detected in four out of ten cases. Thus, estimated test statistics and graphical analysis suggest the presence of a negatively inclined asymmetry in the relationship between government consumption and the dynamic of aggregate output with stronger output response in periods when government consumption decreases.

show abstract

The asymmetric effects of fiscal policy on inflation and economic activity in post-communist European countries

Cited by 24 publications

References 49 publications

What Can SVAR Models Tell us About the Impact of Public Expenditure Shocks on Macroeconomic Variables in Algeria? A Slight Hint to the COVID-19 Pandemic

What Can SVAR Models Tell us About the Impact of Public Expenditure Shocks on Macroeconomic Variables in Algeria? A Slight Hint to the COVID-19 Pandemic

COVID-19 policy actions and inflation targeting in South Asia

What is the Nature of the Dynamics between Government Spending and Aggregate Output in the Nordic Countries?

Contact Info

Product

Resources

About