Why current expenditure become insignificant to output response?
Posted: Tue Jan 14, 2020 8:41 pm
Dear Scholars,
I have tried to estimate fiscal multiplier using SVAR for Sri Lanka. In my dis-aggregate government expenditure impulse response function has shown insignificant response of output to current expenditure but capital expenditure is significant. (Impulse response graph attached here)
How Do I interpret this result?
Thank you
Ruwan
I have tried to estimate fiscal multiplier using SVAR for Sri Lanka. In my dis-aggregate government expenditure impulse response function has shown insignificant response of output to current expenditure but capital expenditure is significant. (Impulse response graph attached here)
- imp_res.jpg (55.54 KiB) Viewed 10443 times
Thank you
Ruwan