GAUK n. 1632214: Issues in Estimation of the Effects of Fiscal Policy: Identification in Emerging Economies and International Coordination (GAUK Submitted)
|Principal investigator:||Mgr. Michal Paulus|
PhDr. Jaromír Baxa Ph.D.
doc. Ing. Pavel Mertlík CSc.
PhDr. RNDr. Josef Stráský Ph.D.
|Description:||The project will study tax multiplicators – i.e. the effect of taxation on GDP.Project will contribute to knowledge of the effects of fiscal policies utilizing a narrative approach to identification of fiscal shocks. This highly innovative methodology uses verbal statements of fiscal institutions for tracking the causality of fiscal policy and GDP evolution. This method has been developed very recently and promises more precise estimates on various fiscal topics.
In the first part, the effects of tax changes on GDP will be investigated in the case of small open economy – the Czech Republic.
The second part will use the narrative methodology to explore the effects of coordinated fiscal policies in the Eurozone because the contemporary estimates based on VAR or DSGE models are contradictory.
The contribution of the project is empirical and methodological. The first part will deliver the first narratively based estimation of GDP tax multiplier for a small open economy in case of the Czech Republic. The second part will offer the first utilization of the narrative method on the effects of coordinated fiscal policies at all.
|Work in grant:|