Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines
As with most of the world economy, the 2008/09 global financial crisis has brought massive impacts on Southeast Asian economies. The debt/GDP ratios in most economies rose significantly, thus putting the spotlight again on fiscal sustainability. This article aims to distinguish the reaction of the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://journalarticle.ukm.my/19625/ http://journalarticle.ukm.my/19625/1/jeko_521-6.pdf |
| _version_ | 1848814889310617600 |
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| author | Lau, Evan Lee, Alvina Syn-Yee |
| author_facet | Lau, Evan Lee, Alvina Syn-Yee |
| author_sort | Lau, Evan |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | As with most of the world economy, the 2008/09 global financial crisis has brought massive impacts on Southeast
Asian economies. The debt/GDP ratios in most economies rose significantly, thus putting the spotlight again on fiscal
sustainability. This article aims to distinguish the reaction of the primary balance/GDP to changes in the debt/GDP
to assess the fiscal sustainability of Malaysia, Thailand, and the Philippines. In investigating how the respective
governments react to the accumulation of debt, the article estimates the fiscal reaction function, initiated by Bohn
(1998), using Ordinary Least Square (OLS) and Vector Autoregression (VAR). The empirical analysis reveals that, based
on past behaviour, fiscal policy in Malaysia, Thailand, and the Philippines remains sustainable. |
| first_indexed | 2025-11-15T00:41:15Z |
| format | Article |
| id | oai:generic.eprints.org:19625 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:41:15Z |
| publishDate | 2018 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:196252022-09-08T07:34:58Z http://journalarticle.ukm.my/19625/ Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines Lau, Evan Lee, Alvina Syn-Yee As with most of the world economy, the 2008/09 global financial crisis has brought massive impacts on Southeast Asian economies. The debt/GDP ratios in most economies rose significantly, thus putting the spotlight again on fiscal sustainability. This article aims to distinguish the reaction of the primary balance/GDP to changes in the debt/GDP to assess the fiscal sustainability of Malaysia, Thailand, and the Philippines. In investigating how the respective governments react to the accumulation of debt, the article estimates the fiscal reaction function, initiated by Bohn (1998), using Ordinary Least Square (OLS) and Vector Autoregression (VAR). The empirical analysis reveals that, based on past behaviour, fiscal policy in Malaysia, Thailand, and the Philippines remains sustainable. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19625/1/jeko_521-6.pdf Lau, Evan and Lee, Alvina Syn-Yee (2018) Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines. Jurnal Ekonomi Malaysia, 52 (1). pp. 67-76. ISSN 0127-1962 https://www.ukm.my/jem/issue/v52i1/ |
| spellingShingle | Lau, Evan Lee, Alvina Syn-Yee Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines |
| title | Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines |
| title_full | Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines |
| title_fullStr | Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines |
| title_full_unstemmed | Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines |
| title_short | Estimating fiscal reaction functions in Malaysia, Thailand and the Philippines |
| title_sort | estimating fiscal reaction functions in malaysia, thailand and the philippines |
| url | http://journalarticle.ukm.my/19625/ http://journalarticle.ukm.my/19625/ http://journalarticle.ukm.my/19625/1/jeko_521-6.pdf |