Journal Article
An estimated fiscal Taylor Rule for the postwar United States
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.
Key Words
- deficits
- Fiscal Taylor Rule
- Government Spending
- Spending reversals
- Steuern
- taxes
- transfer payments