Journal Article

How little we know about deficit policy effects


Abstract: We use a simple model to show why previous empirical studies of budget policy effects are flawed. Due to an identification problem, those studies' findings can be shown to be consistent with policies either mattering or not. We argue that this problem is difficult and not likely to be resolved soon.

Access Documents

File(s): File format is application/pdf http://minneapolisfed.org/research/qr/qr1611.pdf

File(s): File format is text/html http://minneapolisfed.org/research/qr/qr1611.html

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Minneapolis

Part of Series: Quarterly Review

Publication Date: 1992

Volume: 16

Issue: Win

Pages: 2-11