Effects of fiscal policy is an important part of the usage of ADAM. The short run effects are affected by changes in the model and data bank. The short run characteristics are thus analysed regularly - typically in connection with new model versions. The model properties are analysed by comparing with the previous model version and focus on the differences in the models properties coming from changes in the model and data bank. Analysis of the short run characteristics is similar to the standard multiplier analysis. the main difference is that focus is on the effects in the first couple of years with emphasis on the connection between fiscal policy and aggregated economic activity.
More on first year effects in ADAM (Danish only).