Does Fiscal Policy Matter for the Trade Account? A Panel Cointegration Study

This paper analyzes the empirical relationship between fiscal policy and the trade account. Research prior to this paper did not consider that the components of private and public demand in the import demand equation exhibit different elasticities. Using pooled mean group estimation for annual panel...

Full description

Bibliographic Details
Main Author: Nickel, Christiane
Other Authors: Funke, Katja
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 02240nmm a2200541 u 4500
001 EB000930586
003 EBX01000000000000000724182
005 00000000000000.0
007 cr|||||||||||||||||||||
008 150128 ||| eng
020 |a 9781451864076 
100 1 |a Nickel, Christiane 
245 0 0 |a Does Fiscal Policy Matter for the Trade Account? A Panel Cointegration Study  |c Christiane Nickel, Katja Funke 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2006 
300 |a 27 pages 
651 4 |a Japan 
653 |a Wealth 
653 |a Economics 
653 |a Private investment 
653 |a Investment 
653 |a Private consumption 
653 |a Public finance & taxation 
653 |a Saving 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a Intangible Capital 
653 |a International economics 
653 |a National Government Expenditures and Related Policies: General 
653 |a Expenditure 
653 |a Saving and investment 
653 |a Exports 
653 |a Investments: General 
653 |a Consumption 
653 |a Expenditures, Public 
653 |a Macroeconomics 
653 |a Macroeconomics: Consumption 
653 |a Capacity 
653 |a Capital 
653 |a Public Finance 
653 |a Imports 
700 1 |a Funke, Katja 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
028 5 0 |a 10.5089/9781451864076.001 
856 4 0 |u https://elibrary.imf.org/view/journals/001/2006/147/001.2006.issue-147-en.xml?cid=19274-com-dsp-marc  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a This paper analyzes the empirical relationship between fiscal policy and the trade account. Research prior to this paper did not consider that the components of private and public demand in the import demand equation exhibit different elasticities. Using pooled mean group estimation for annual panel data of the G-7 countries for the years 1970 through 2002, we provide empirical evidence that the composition of overall demand-i.e., the distribution among public demand, private demand, and export demand-has an impact on the magnitude of the trade account deficit