Discretionary Fiscal Policies over the Cycle: New Evidence Based on the ESCB Disaggregated Approach

Luca Agnello () and Jacopo Cimadomo

International Journal of Central Banking, 2012, vol. 8, issue 2, 43-85

Abstract: This paper explores how discretionary fiscal policies on the revenue side of the government budget have reacted to economic fluctuations in European Union countries. For this purpose, it uses data on legislated revenue changes and structural indicators provided twice per year by national central banks of European Union countries in the ESCB framework for analyzing fiscal policy. Results suggest that, overall, legislated changes in taxes and social security contributions have responded in a strongly procyclical way to the business cycle, while commonly used cyclical-adjustment methods point to acyclicality.

JEL-codes: E62 E65 H20 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.ijcb.org/journal/ijcb12q2a2.pdf (application/pdf)
http://www.ijcb.org/journal/ijcb12q2a2.htm (text/html)

Related works:
Working Paper: Discretionary Fiscal Policies over the Cycle: New Evidence based on the ESCB Disaggregated Approach (2009)
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:ijc:ijcjou:y:2012:q:2:a:2

Access Statistics for this article

International Journal of Central Banking is currently edited by Loretta J. Mester

More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().