Measuring China's Fiscal Policy Stance

Sebastian Dullien ()

Macroeconomics from EconWPA

Abstract: This paper argues that the tradtitional way of gauging a country's fiscal policy stance by looking at government budget deficit or cyclically adjusted budget deficits is misleading in the case of China, since a lot of what usually would be considered fiscal policy is conducted via investment by state owned enterprises. The paper therefore proposes a different indicator for the fiscal policy stance, constructed from government consumption, government expenditure, the state-owned- enterprises' investments and tax revenue. Using this indicator, it can be shown that fiscal policy has been strongly counter-cyclical in China over the past two decades.

Keywords: Fiscal Policy; China; State-Owned Enterprises; Statistics (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac, nep-pbe, nep-sea and nep-tra
Date: 2005-02-28
Note: Type of Document - pdf; pages: 11
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0502032

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