Journal Article

An estimated fiscal Taylor Rule for the postwar United States


  • Reicher
  • C.
Publication Date

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.


JEL Classification
E62, E63, H20, H62

Key Words

  • deficits
  • Fiscal Taylor Rule
  • Government Spending
  • Spending reversals
  • Steuern
  • taxes
  • transfer payments