Sound Fiscal Reactions to Stochastic Shocks: A DSGE Approach
Using a New Keynesian dynamic stochastic general equilibrium of Iran with price rigidity and imperfect markets, this paper shows how different stochastic shocks affect main macroeconomic variables in presence of variety of reaction functions. In this way, we compare the response of those variables t...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2014-03-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_977_d9f354b9d8cc838ce52aaaaa4fe18d8a.pdf |
| _version_ | 1797369383402602496 |
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| author | Javid Bahrami Meysam Rafei |
| author_facet | Javid Bahrami Meysam Rafei |
| author_sort | Javid Bahrami |
| collection | DOAJ |
| description | Using a New Keynesian dynamic stochastic general equilibrium of Iran with price rigidity and imperfect markets, this paper shows how different stochastic shocks affect main macroeconomic variables in presence of variety of reaction functions. In this way, we compare the response of those variables to the shocks in baseline scenario (which the government does not perform any reaction) with an alternative; when government reacts counter-cyclically through back ward looking fiscal rules. Our findings was in favor of active counter-cyclical fiscal policy, by showing that the deviations from target values decrease when government reacts actively. |
| first_indexed | 2024-03-08T17:45:54Z |
| format | Article |
| id | doaj.art-642d43073d624f5d8dc6b65c69610138 |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:45:54Z |
| publishDate | 2014-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-642d43073d624f5d8dc6b65c696101382024-01-02T10:29:09ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452014-03-011958137977Sound Fiscal Reactions to Stochastic Shocks: A DSGE ApproachJavid Bahrami0Meysam Rafei1استادیار دانشگاه علامه طباطباییدانشجوی دکتری دانشکده اقتصاد دانشگاه علامه طباطباییUsing a New Keynesian dynamic stochastic general equilibrium of Iran with price rigidity and imperfect markets, this paper shows how different stochastic shocks affect main macroeconomic variables in presence of variety of reaction functions. In this way, we compare the response of those variables to the shocks in baseline scenario (which the government does not perform any reaction) with an alternative; when government reacts counter-cyclically through back ward looking fiscal rules. Our findings was in favor of active counter-cyclical fiscal policy, by showing that the deviations from target values decrease when government reacts actively.https://ijer.atu.ac.ir/article_977_d9f354b9d8cc838ce52aaaaa4fe18d8a.pdfnew keynesian dynamic stochastic general equilibrium modelfiscal policy |
| spellingShingle | Javid Bahrami Meysam Rafei Sound Fiscal Reactions to Stochastic Shocks: A DSGE Approach فصلنامه پژوهشهای اقتصادی ایران new keynesian dynamic stochastic general equilibrium model fiscal policy |
| title | Sound Fiscal Reactions to Stochastic Shocks:
A DSGE Approach |
| title_full | Sound Fiscal Reactions to Stochastic Shocks:
A DSGE Approach |
| title_fullStr | Sound Fiscal Reactions to Stochastic Shocks:
A DSGE Approach |
| title_full_unstemmed | Sound Fiscal Reactions to Stochastic Shocks:
A DSGE Approach |
| title_short | Sound Fiscal Reactions to Stochastic Shocks:
A DSGE Approach |
| title_sort | sound fiscal reactions to stochastic shocks a dsge approach |
| topic | new keynesian dynamic stochastic general equilibrium model fiscal policy |
| url | https://ijer.atu.ac.ir/article_977_d9f354b9d8cc838ce52aaaaa4fe18d8a.pdf |
| work_keys_str_mv | AT javidbahrami soundfiscalreactionstostochasticshocksadsgeapproach AT meysamrafei soundfiscalreactionstostochasticshocksadsgeapproach |