Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 13, 2015 erstellt
Description:
This paper explores the size and sign of exogenous fiscal shocks in Barbados using the structural vector autoregression (SVAR), Bayesian vector autoregression (BVAR) and dynamic stochastic general equilibrium (DSGE) models. Shocks to government spending are shown to have a positive impact on output across all models. Shocks to taxes are also shown to have a positive impact on output, possibly hinting that a tax increase is usually followed by a spending increase which offsets the effects of the tax increase. Thus, we recommend that Government focus on increasing operational efficiency while correcting structural deficiencies and practicing prudent management of debt levels