ABSTRACT
Fiscal policy is the use of government spending and government taxation to influence desirable outcomes of the economy, with due consideration for maintaining a sustainable balance between expenditures and revenues. Successful application of fiscal policy in times of economic crises and low growth is a very challenging job, and the number of countries renowned for a successful management of the fiscal budget is limited. This chapter treats a few aspects of modelling fiscal policy in a CGE model in the context of the Netherlands. A few remarks may be made on the background of this model and its positioning with respect to the fiscal policy experience of the Netherlands and the later advancements made in the art and science of fiscal policy modelling.
