Journal Article

An estimated fiscal Taylor Rule for the postwar United States

Economics Letters

This paper estimates a multi-instrument fiscal Taylor Rule for the United States. Taxes and purchases

both respond strongly to deficits, while transfers do not. Taxes are procyclical; purchases are cyclical; and transfers are countercyclical. These estimates appear stable over time.


Christopher Reicher


Publication Date
JEL Classification
E62, E63, H20, H62