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Title: |
The Effects of Fiscal Policy in Korea |
| Author: |
Evans, Paul |
| Author
Affiliation: |
OH State U |
| Source: |
International Economic Journal, Summer 1988, v. 2, no. 2, pp. 1-14 |
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Publication Date: |
Summer 1988 |
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Abstract: |
This paper investigates whether a
neoclassical model can explain output and investment in Korea. The model
disaggregates government purchases into defense purchases, nondefense
consumption purchases and government investment and splits each of these
into a permanent component and a transitory component. Although the
regressions reported in this paper do fit well, their implications have
no consistent neoclassical interpretation and have unreasonable policy
implications. If one ignores how unreasonable these implications are,
one can conclude that government purchases affect the Korean economy in
much different ways according to what type they are and whether they are
permanent or transitory. |
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