1. IS DISCRETIONARY FISCAL POLICY EFFECTIVE? THE CARIBBEAN EXPERIENCE.
- Author
-
BANGWAYO-SKEETE, Prosper F.
- Subjects
FISCAL policy ,GLOBAL Financial Crisis, 2008-2009 ,ECONOMIC stimulus - Abstract
Governments' recourse to fiscal policy to mitigate the effects of the 2008-2009 global economic crisis renewed interest on the role of fiscal policy on influencing economic activity. Consequently, vast empirical research emerged in developed countries, while little remains known in developing economies which implemented similar fiscal stimulus packages. Accordingly, this paper analyzes the economic growth effects of discretionary fiscal policy in small open developing economies with application to the Caribbean. Using structural vector autoregressive methods, results reveal new evidence of expansionary fiscal contractions in Barbados. Government expansionary policies transitorily stimulate Trinidad and Tobago's economy but have no effect on Jamaica's. [ABSTRACT FROM AUTHOR]
- Published
- 2014