ON THE ROLE OF FISCAL POLICY IN THE U.S. ECONOMY
Ali F. Darrat
(Premier Bank Endowed Professor of Finance & Professor of Economics, Department of Economics and Finance, Louisiana Tech University, Ruston, Louisiana, 71272)
Anas H. Hamed
(Assistant Professor of Applied Economics, Grambling State University.)
510
Abstract
Contrary to the restrictive bivariate results of Saunders (1995), our findings from open‐economy multivariate models accord with the conventional IS/LM apparatus and decisively support the use of fiscal policy as a key macrostablization tool in the U.S. economy. We provide theoretical explanations for our results and produce empirical evidence for their robustness.
Citation
Darrat, A.F. and Hamed, A.H. (1997), "ON THE ROLE OF FISCAL POLICY IN THE U.S. ECONOMY", Studies in Economics and Finance, Vol. 18 No. 2, pp. 36-58. https://doi.org/10.1108/eb028741
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited