Finland: Selected Issues
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Summary:
In light of potential changes in fiscal policy in Finland, the impact of changes in the fiscal stance on short-term economic growth is an issue of interest. This paper estimates the short-term impact of fiscal policy on growth in Finland. The estimates are based on a structural vector autoregression (SVAR) model. However, identifying the long-term impact of changes in labor taxes on employment and growth is not an easy task. Although fiscal policy influences GDP in the short-term, the impact remains small compared with results.
Series:
Country Report No. 2003/326
Subject:
Expenditure Fiscal policy Labor Output gap Potential output Production Unemployment rate
English
Publication Date:
October 16, 2003
ISBN/ISSN:
9781451813210/1934-7685
Stock No:
1FINEA0022003
Pages:
51
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