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University of South Florida M3 Center Publishing

Abstract

The impact of optimal fiscal policy measures in a managed fixed exchange rate system were questioned in this study, to evaluate the extent of Integrated Monetary and Fiscal Policy issuing quarterly time series data for Germany, for the period ranged between 1991q1 to 2017q4. The study shows that an optimal utilization of fiscal policy measures for economic growth in Germany is questioned in the light of tax revenue, government expenditure and public debt and consumer price index. The Autoregressive Distributed Lag (ARDL) model was employed due to the fact that one of the data parameters becomes stationary at level by 0.10% with a probability value of 0.0768, as shown in Table 1, while the other data parameter becomes stationary after differencing, as shown in Table 2 below. Numerous tests were employed to identify the stability and causality of the variables. The stability and causal relations of the data were proved by serial correlation Breusch Godfrey LM test and heteroskedasticity test, respectively. The analyses revealed that fiscal policy instruments are used optimally in Germany as proved by the outcome of the research and S. Boubaker (2018).

DOI

https://www.doi.org/10.5038/9781955833035

Recommended Citation

Akalpler, E., & Birnintsabas, D. A. (2021). Optimal fiscal and price stability in Germany: Autoregressive distributed lags (ARDL) cointegration relationship. In C. Cobanoglu, & V. Della Corte (Eds.), Advances in global services and retail management (pp. 1–8). USF M3 Publishing. https://www.doi.org/10.5038/9781955833035

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License

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