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| Authors | R.M.W.J. Beetsma, M. Giuliodori, F.J.G.M. Klaassen | | Title | Trade Spilovers of fiscal Policy in the European Union: A Panel Analysis. |
| Journal | Economic Policy |
| Volume | 21 |
| Year | 2006 |
| Issue | 48 |
| Pages | 640-687 |
| ISSN | 02664658 |
| Faculty | Faculty of Economics and Business |
| Institute/dept. | FEB: Research Institute in Economics and Econometrics Amsterdam (RESAM) |
| Abstract | Spill-overs in the EU
We explore international spill-overs from fiscal policy shocks via trade in Europe. To assess and quantify the channels through which a fiscal expansion stimulates domestic activity, foreign exports, and foreign output, we estimate a dynamic empirical model of government spending, net taxes, and output, and combine its estimates with a panel model of trade linkages across European countries. The baseline estimates of both models are quite robust and statistically significant. Our results indicate that trade spill-overs of fiscal shocks should be taken into account when assessing the character and intensity of economic integration in the European Union. |
| Document type | Article |
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