The effects of fiscal policy on the Spanish economy: Keynesian or non-Keynesian behavior?

Can fiscal policy help to the ending of the economic crisis affecting Spain? Given this starting point, we study the effects on the Spanish economy of a shock to total public receipts or a shock to total public expenditure. With that objective in mind, we specify and estimate a vector error correction model with exogenous variables, using quarterly monetary and fiscal data for the Spanish economy from 1978 to 2009.