@article{Characterization:975,
      recid = {975},
      author = {Rebei, Nooman},
      title = {Characterization of the Dynamic Effects of Fiscal Shocks  in a Small Open Economy},
      publisher = {Bank of Canada},
      address = {2004},
      pages = {1 online resource (v, 34 pages)},
      abstract = {The author studies the macroeconomic consequences of  discretionary changes in the fiscal policy instruments for  Canada. He adopts a semi-structural vector autoregression  framework. Restrictions are based on institutional  interactions between some policy and non-policy instruments  that mimic a government's decision process. The author  characterizes the actual economy's response to fiscal  shocks, and proposes a theoretical model for a small open  economy with nominal and real rigidities to test for the  endogenous transmission mechanisms following shocks to  government spending. He pursues a limited-information  econometric strategy by comparing the theoretical  impluse-response functions with the empirical ones,  capturing the effects of a disturbance in government  spending. Generally, the results of the model are very  close to the observed reactions, especially for  consumption, investment, exports, imports, and inflation;  however, the model fails to predict the real exchange rate  reaction.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/975},
      doi = {https://doi.org/10.34989/swp-2004-41},
}