The Impact of Fiscal Policy on the U.S. Stock Market Return
Year: 2025
Type: article
Abstract: In this study, I analyze the impact of the aggregate, income, corporate and social security tax revenues on both the U.S. output and the stock market return in a structural vector autoregression (SVAR) framework between 1960:Q1 and 2015:Q4. Unlike some of the other studies, I use aggregate and disaggregated tax revenue variables to examine the impact of scal policy. Results show that an increase in aggregate tax revenue reduces output and market return. In addition, an increase in income, corporate, and social security tax revenues reduces output and the market return signi cantly at varying degrees.
Source: Journal of Economic Analysis
DOI: 10.58567/jea04020010
Author: Ilhami Gunduz
Institution: Fordham University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4409016221