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In light of the conflicting empirical results concerning the effects of fiscal policy on the macroeconomy and the potentially important role of fiscal policy anticipation in this regard, Chapter 3 investigates the response of private consumption to fiscal shocks within an SVAR framework, explicitly taking.
This result is even robust to deviations from the underlying informational assumptions of the expectation augmented VAR. The subsequent application to real data indicates that it is indeed important in empirical work to allow for anticipation of fiscal policy. Moreover, it shows that it.
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