Empirical Evidence Regarding Fiscal Policy
The previous nine chapters provide a minute fraction of what needs to be said about fiscal theory and its policy implications. The focus of the present book has been broad and conceptual. For example, the detailed analytical tools required to apply the theories have been bypassed in favor of rudimentary explanations of the theories and their implications.
Economic theories are formed to explain the economic behavior of humans. There is no economic theory without this human element. It is important to validate economic theories through empirical analysis to provide evidence of the correctness of the theory. Theories are based on assumptions that are believed to be reasonable, meaningful, or ...
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