Public spending is a major policy tool for the government to adjust the macro economic progress. This paper characterizes the effects of shocks in government spending and taxes on Chinese economy growth since 1978. It...Public spending is a major policy tool for the government to adjust the macro economic progress. This paper characterizes the effects of shocks in government spending and taxes on Chinese economy growth since 1978. It does so by using a mixed structural VAR （SVAR） approach. Identification is achieved by using institutional information about the tax and spending to identify automatic and discretionary response, and by implication, to infer fiscal shocks. The results show positive government spending shocks as having a positive effect on output, and positive tax shocks as having a negative effects.展开更多
基金This project is supported by National Social Science Foundation of China （07XJY034） Inner Mongolian Foundation for Natural Science Research （200711020806）
文摘Public spending is a major policy tool for the government to adjust the macro economic progress. This paper characterizes the effects of shocks in government spending and taxes on Chinese economy growth since 1978. It does so by using a mixed structural VAR （SVAR） approach. Identification is achieved by using institutional information about the tax and spending to identify automatic and discretionary response, and by implication, to infer fiscal shocks. The results show positive government spending shocks as having a positive effect on output, and positive tax shocks as having a negative effects.
