Multivariate time series models analyze interdependencies among economic variables, capturing short-term effects and long-term relationships. Tools like VAR and VECM are essential for forecasting and
Discover how logit and probit models analyze binary outcomes like voting behavior or purchase decisions. These econometric tools estimate probabilities effectively, offering critical insights across
Explore how distributed lag models help analyze delayed relationships between variables over time. Learn how these models capture the gradual impact of economic shocks and
Discover how instrumental variables address the challenge of endogeneity in econometrics by isolating exogenous variation in independent variables. Learn their importance, key characteristics, and practical
Discover how countercyclical fiscal policies help stabilize economies by adjusting government spending and taxation to counteract recessions or booms. Learn their benefits, mechanisms, and challenges
Explore the key differences between capital expenditures and current expenditures, two critical components of fiscal policy. Learn how governments balance long-term investments like infrastructure with
Fiscal policy, through government spending, taxation, and borrowing, shapes economic stability, growth, and equity. Learn about its objectives, strategies like countercyclical measures, and challenges in
Fiscal space reflects a government's capacity to increase spending or reduce taxes without jeopardizing fiscal sustainability. Explore its role in economic resilience, crisis response, and
Learn how the fiscal multiplier effect amplifies government spending to boost economic growth. Discover its role in shaping impactful fiscal policies during crises and recovery.
