Report

How little we know about budget policy effects


Abstract: Using a simple model, we 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 either policies mattering or not.

Status: Published in Quarterly Review (Vol 16, Num 1, Winter 1992, pp. 2-11)

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File(s): File format is application/pdf https://www.minneapolisfed.org/research/sr/sr120.pdf
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Provider: Federal Reserve Bank of Minneapolis

Part of Series: Staff Report

Publication Date: 1989

Number: 120