Behavioral impulses and the transmission channels of their impact on macroeconomic stability
Maryna Brychko et al.
What the paper says
This study investigates the impact of behavioral impulses, specifically corruption perception and government effectiveness, on macroeconomic stability through fiscal transmission channels. A Vector Autoregression (VAR) model was used to analyze the impulse responses of key macroeconomic indicators, including tax revenues, state budget expenditures, and GDP per capita, to shocks in corruption perception and governance quality. The findings reveal that improvements in corruption perception initially boost tax revenues and economic growth but have diminishing effects over time, emphasizing the need for sustained policy enforcement. In contrast, government effectiveness has a delayed but more persistent impact on fiscal stability. The study challenges the greasing-the-wheels hypothesis, demonstrating that corruption weakens rather than facilitates economic efficiency. The study contributes to the literature on behavioral economics by demonstrating that public trust, shaped by corruption control and effective governance, plays a more pivotal role in maintaining macroeconomic stability than the previously acknowledged indicators of individual well-being.
2 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.25 × 0.4 = 0.10 |
| M · momentum | 0.55 × 0.15 = 0.08 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.