EconPapers    
Economics at your fingertips  
 

Assessing long-term fiscal developments: A new approach

Antonio Afonso, Luca Agnello (), Davide Furceri and Ricardo Sousa

Journal of International Money and Finance, 2011, vol. 30, issue 1, 130-146

Abstract: We use a new approach to assess long-term fiscal developments. By analyzing the time-varying behaviour of the two components of government spending and revenue - responsiveness and persistence -, a feature not captured by automatic stabilisers, we are able to infer about the sources of fiscal deterioration (improvement). Drawing on quarterly data, we estimate recursively these components within a system of government revenue and spending equations using a Three-Stage Least Square method for eight European Union countries plus the US. The results suggest that significant changes in the fiscal stance (including those related to the current crisis) are reflected in the estimates of persistence and responsiveness.

Keywords: Fiscal; deterioration; Fiscal; sustainability (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261-5606(10)00100-2
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Assessing long-term fiscal developments - a new approach (2009) Downloads
Working Paper: Assessing Long-Term Fiscal Developments: a New Approach (2009) Downloads
Working Paper: Assessing Long-Term Fiscal Developments: a New Approach (2009) Downloads
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:eee:jimfin:v:30:y:2011:i:1:p:130-146

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-29
Handle: RePEc:eee:jimfin:v:30:y:2011:i:1:p:130-146