Publication details


Title in English Influence of fiscal policy on business cycle

REICHEL Vlastimil HLOUŠEK Miroslav

Year of publication 2015
Type Article in Proceedings
Conference Hradecké ekonomické dny 2015
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords business cycle; fiscal policy; time series; cross correlation analysis; SVAR model
Description This paper analyses macroeconomic data of Czech and Slovak economy with aim to decide if fiscal policy has procyclical or coutercyclical influence to the business cycle. We use quarterly data for the Czech Republic covering period 2001Q1-2012Q1 and quarterly data for the Slovak Republic covering period 2003Q1-2012Q1. Firstly, we test the relationship between fiscal policy and the business cycle with help of the cross correlation coefficient. Secondly, using structural VAR model we identify fiscal policy shock from the data. This shock is compared with the business cycle and its procyclical or coutercyclical influence is discussed. Results are as follows: First method shows the procyclical influence, second method shows both procyclical and countercyclical influences.
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