How Quickly is News Incorporated in Fiscal Forecasts?

Joao Jalles

Economics Bulletin, 2015, vol. 35, issue 4, 2802-2812

Abstract: This paper tests for the existence of information rigidities in private sector budget-balance forecasts in a multi-country context for a sample of G7 countries between 1993 and 2012. We find evidence of information rigidities in fiscal forecast as private forecasters fail to adjust their budget balance forecasts quick enough in response not only to domestic news, but also to news from abroad.

Keywords: budget balance; forecast comparison; information rigidity; Panel VAR; impulse response functions (search for similar items in EconPapers)
JEL-codes: C5 E6 (search for similar items in EconPapers)
Date: 2015-12-18
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Citations: View citations in EconPapers (1)

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