Finland : Selected Issues

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.
Publication date: October 2003
ISBN: 9781451813210
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Topics covered in this book

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Economics- Macroeconomics , Economics- Macroeconomics , Taxation - General , Taxation - General , fiscal policy , taxes , tax cuts , tax changes , discretionary fiscal policy

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