Abstract
This paper identifies the discretionary component of Japan's public deficits, which is included in the structural component in existing work. The identification is done by collecting data and information of stimulus packages. Discretionary expenditure, discretionary revenue, and cyclical revenue are the main factors of increases in public deficits in the 1990s. The revenue side has had greater impacts on deficits than expenditure. The effects of stimulus packages are examined, using the discretionary deficits. Stimulus policies have multiplier effects, while overall public deficits have not. Results of analyses indicate that: (1) stimulus packages have economic effects, (2) they also bring fiscal deficits, thus can be additional constraints on the government budget, (3) public deficits can be eased with GDP growth if tax is returned to the previous level, (4) the public finance has a structural deficit.
| Original language | English |
|---|---|
| Pages (from-to) | 2239-2249 |
| Number of pages | 11 |
| Journal | Applied Economics |
| Volume | 37 |
| Issue number | 19 |
| DOIs | |
| Publication status | Published - Oct 20 2005 |
| Externally published | Yes |
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ASJC Scopus subject areas
- Economics and Econometrics
Cite this
Discretionary deficit and its effects on Japanese economy. / Tsuri, Masao.
In: Applied Economics, Vol. 37, No. 19, 20.10.2005, p. 2239-2249.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Discretionary deficit and its effects on Japanese economy
AU - Tsuri, Masao
PY - 2005/10/20
Y1 - 2005/10/20
N2 - This paper identifies the discretionary component of Japan's public deficits, which is included in the structural component in existing work. The identification is done by collecting data and information of stimulus packages. Discretionary expenditure, discretionary revenue, and cyclical revenue are the main factors of increases in public deficits in the 1990s. The revenue side has had greater impacts on deficits than expenditure. The effects of stimulus packages are examined, using the discretionary deficits. Stimulus policies have multiplier effects, while overall public deficits have not. Results of analyses indicate that: (1) stimulus packages have economic effects, (2) they also bring fiscal deficits, thus can be additional constraints on the government budget, (3) public deficits can be eased with GDP growth if tax is returned to the previous level, (4) the public finance has a structural deficit.
AB - This paper identifies the discretionary component of Japan's public deficits, which is included in the structural component in existing work. The identification is done by collecting data and information of stimulus packages. Discretionary expenditure, discretionary revenue, and cyclical revenue are the main factors of increases in public deficits in the 1990s. The revenue side has had greater impacts on deficits than expenditure. The effects of stimulus packages are examined, using the discretionary deficits. Stimulus policies have multiplier effects, while overall public deficits have not. Results of analyses indicate that: (1) stimulus packages have economic effects, (2) they also bring fiscal deficits, thus can be additional constraints on the government budget, (3) public deficits can be eased with GDP growth if tax is returned to the previous level, (4) the public finance has a structural deficit.
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U2 - 10.1080/00036840500293870
DO - 10.1080/00036840500293870
M3 - Article
AN - SCOPUS:27744524778
VL - 37
SP - 2239
EP - 2249
JO - Applied Economics
JF - Applied Economics
SN - 0003-6846
IS - 19
ER -