Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83028
Authors: 
Lindé, Jesper
Year of Publication: 
2000
Series/Report no.: 
Sveriges Riksbank Working Paper Series 55
Abstract: 
This paper contains an empirical investigation of the effects of fiscal policy on interest rates based on a conventional stochastic macro model designed for a small open economy. The empirical investigation undertaken utilizes data for Sweden, a country which has experienced very large fluctuations in the government budget deficits and in the short- and long-term nominal interest rates, thus providing a better empirical test than previous studies. According to the empirical results, larger budget deficits jspell higher interest rates, as posited by conventional macroeconomic theory.
Subjects: 
Term structure of interest rates
Ricardian equivalence
budget deficits
small open economy
stationary and non-stationary time series
JEL: 
E12
E62
F41
Document Type: 
Working Paper

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