Research on the Nonlinear Effect of Private Investment Demand of China's Fiscal Policy
| [Title] |
Research on the Nonlinear Effect of Private Investment Demand of China's Fiscal Policy |
| Journal |
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| [Publication No.] |
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| Author |
Chen Langnan; Liu Yang, |
| Unit |
Lingnan College, Sun Yat sen University,; |
| Abstract |
This paper uses the MS-VAR model to empirically test whether the impact of fiscal policy on private investment demand has nonlinear characteristics, and uses the Regime-Dependent IRF method to analyze the direction and duration of the impact of fiscal policy on private investment. The empirical results show that fiscal policy has nonlinear private investment effect; In the period of insufficient investment demand, the expansion of fiscal expenditure significantly promoted the growth of private investment, lasting about 20 months; During the period of strong investment demand, the increase of fiscal expenditure significantly inhibited the growth of private investment, which lasted for about 10 months. |
| Keywords |
Fiscal policy; Private investment demand; Nonlinear effect; MS—VAR;Regime—Dependent;IRF; |
| Note: Units marked with asterisk (*) are institutional members of China Enterprise Management Research Association |