000			01545nam a22001577a 4500
999			_c520513 _d520513
008			220919b ||||| |||| 00| 0 eng d
100			_aSobti, Riddhima _934411
245			_aThe macroeconomic impact of fiscal policy shocks: What do the Indian data say?
260			_aMargin: The Journal of Applied Economic Research
300			_a(16(1), Feb, 2022: p.7-27
520			_aThis article examines the impact of fiscal policy shocks on a set of macroeconomic variables in India, using a seasonally adjusted quarterly dataset for the period 2003–2019. The Gregory-Hansen residual-based test for cointegration and the vector error correction model (VECM) are applied, and impulse responses based on a recursive identification scheme (Cholesky decomposition) is used to assess the effects of a gross tax revenue shock and a government spending shock on economic activity, while accounting for the possibility of structural breaks. The findings indicate that an unexpected fiscal policy shock has an immediate expansionary impact on real GDP and a sudden positive effect on inflation (WPI) and the repo rate; and that the impact is permanent and away from the zero equilibrium. The careful design of policies by the central bank and the government as crucial macroeconomic stabilisation tools is imperative. – Reproduced
650			_aFiscal policy shocks, India, Real GDP, Cointergution , WPI, Repo Rate JEL classification. _933217
773			_aMargin: The Journal of Applied Economic Research
906			_aFISCAL POLICY
942			_cAR