A New Method for Constructing a Cyclically Adjusted Budget Balance: the Case of Sweden

Henrik Braconier and Tomas Forsfält ()
Additional contact information
Henrik Braconier: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
Tomas Forsfält: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden

No 90, Working Papers from National Institute of Economic Research

Abstract: In this paper, we discuss a new method for constructing a cyclically adjusted budget balance. We use the method to evaluate the budget balance for Sweden during the period 1991–2005. Traditionally, methods for cyclical adjustment have focused on the output gap. In this paper we also adjust for deviations of tax bases from their trend levels. Furthermore, we adjust for effects of the unemployment gap on government spending. For Sweden, we find that these additional adjustments have a significant impact on the cyclically adjusted budget balance, especially for the periods 1992–1995 and 2000–2001.

Keywords: Fiscal Policy; Cyclically Adjusted Budget Balance (search for similar items in EconPapers)
JEL-codes: H30 H61 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2004-04-15
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.konj.se/download/18.4ee9b512150ed5e093b ... e-Case-of-Sweden.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.konj.se/download/18.4ee9b512150ed5e093b906fb/1447246075149/Working-Paper-90-A-New-Method-for-Constructing-a-Cyclically-Adjusted-Budget-Balance-the-Case-of-Sweden.pdf [301 Moved Permanently]--> https://www.konj.se/download/18.4ee9b512150ed5e093b906fb/1447246075149/Working-Paper-90-A-New-Method-for-Constructing-a-Cyclically-Adjusted-Budget-Balance-the-Case-of-Sweden.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:nierwp:0090

Access Statistics for this paper

More papers in Working Papers from National Institute of Economic Research National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Hegardt Grant ( this e-mail address is bad, please contact ).