04924oam 22012374 450 991078852340332120230829002229.01-4623-1146-61-4527-2390-71-282-44778-51-4519-8900-89786613820983(CKB)3360000000443137(EBL)3014410(SSID)ssj0000942992(PQKBManifestationID)11566060(PQKBTitleCode)TC0000942992(PQKBWorkID)10975057(PQKB)11110740(OCoLC)712989266(MiAaPQ)EBC3014410(IMF)WPIEE2006182(EXLCZ)99336000000044313720020129d2006 uf 0engur|n|---|||||txtccrOn the Properties of Various Estimators for Fiscal Reaction Functions /Oya Celasun, Joong KangWashington, D.C. :International Monetary Fund,2006.1 online resource (29 p.)IMF Working Papers"July 2006."1-4518-6442-6 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. BIASES OF ORDINARY-LEAST-SQUARES (OLS) AND LEAST-SQUARES-WITH-DUMMY VARIABLES ( LSDV) ESTIMATORS: ANALYTICAL SOLUTIONS""; ""III. MONTE CARLO EXPERIMENTS""; ""IV. CONCLUSION""; ""References""This paper evaluates the bias of the least-squares-with-dummy-variables (LSDV) method in fiscal reaction function estimations. A growing number of studies estimate fiscal policy reaction functions-that is, relationships between the primary fiscal balance and its determinants, including public debt and the output gap. A previously unexplored methodological issue in these estimations is that lagged debt is not a strictly exogenous variable, which biases the LSDV estimator in short panels. We derive the bias analytically to understand its determinants and run Monte Carlo simulations to assess its likely size in empirical work. We find the bias to be smaller than the bias of the LSDV estimator in a comparable autoregressive dynamic panel model and show the LSDV method to outperform a number of alternatives in estimating fiscal reaction functions.IMF Working Papers; Working Paper ;No. 2006/182Fiscal policyEconometric modelsFinance, PublicEconometricsimfInvestments: BondsimfMacroeconomicsimfPublic FinanceimfProduction and Operations Managementimf'Panel Data ModelsimfSpatio-temporal Models'imfNational Deficit SurplusimfDebtimfDebt ManagementimfSovereign DebtimfMacroeconomics: ProductionimfFiscal PolicyimfEstimationimfGeneral Financial Markets: General (includes Measurement and Data)imfPublic finance & taxationimfEconometrics & economic statisticsimfInvestment & securitiesimfOutput gapimfFiscal stanceimfPublic debtimfEstimation techniquesimfBondsimfProductionimfEconomic theoryimfFiscal policyimfDebts, PublicimfEconometric modelsimfFiscal policyEconometric models.Finance, Public.EconometricsInvestments: BondsMacroeconomicsPublic FinanceProduction and Operations Management'Panel Data ModelsSpatio-temporal Models'National Deficit SurplusDebtDebt ManagementSovereign DebtMacroeconomics: ProductionFiscal PolicyEstimationGeneral Financial Markets: General (includes Measurement and Data)Public finance & taxationEconometrics & economic statisticsInvestment & securitiesOutput gapFiscal stancePublic debtEstimation techniquesBondsProductionEconomic theoryFiscal policyDebts, PublicEconometric modelsCelasun Oya1462106Kang Joong1449952DcWaIMFBOOK9910788523403321On the Properties of Various Estimators for Fiscal Reaction Functions3670955UNINA