Title: Test on Sustainability of Fiscal Policy in China Based on Structural Primary Gap
Abstract:In this paper,potential output and output gap in China are estimated by neo-Keynesian dynamic model. Structural budget balance and cyclical budget balance are estimated with the results above,with whi...In this paper,potential output and output gap in China are estimated by neo-Keynesian dynamic model. Structural budget balance and cyclical budget balance are estimated with the results above,with which we calculate the indicator of structural primary gap.According to the sustainability test of fiscal policy,we know that fiscal policy at present is unsustainable,which suggests that it is right for our government to turn the expansionary fiscal policy to the neutral one.Read More
Publication Year: 2006
Publication Date: 2006-01-01
Language: en
Type: article
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