Series: IMF Working Papers
Author(s): Salvatore Dell'Erba , and Sergio Sola
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 03 July 2013
Keywords: Real time data, Cross-sectional dependence, Heterogeneous panels, public debt, fiscal stance, budget deficits, fiscal variables, General, International Policy Coordination and Transmission, Globalization: Macroeconomic Impacts
This paper reconsiders the effects of fiscal policy on long-term interest rates employing a Factor Augmented Panel (FAP) to control for the presence of common unobservable factors. We construct a real-time dataset...