Price Differentials in Monetary Unions: The Role of Fiscal Shocks
研究美国各州和欧盟国家的地区财政收支冲击如何影响价格差异，发现扩张性财政冲击扩大价格差异，而平衡预算冲击则缩小价格差异。
We study the effect of regional expenditure and revenue shocks on price differentials for 47 US states and 9 EU countries. We identify shocks using sign restrictions on the dynamics of expenditures, revenues, deficits and output and construct two estimates for structural price differentials dynamics, one for the average and one for each unit, which optimally weight information contained in the data for all units. On average, expansionary fiscal disturbances produce positive, while distortionary balance budget shocks produce negative price differential responses. The negative price differentials responses in some units is partially explained by spillovers and labour supply effects. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.