Asymmetric Macroeconomic Stabilization And Fiscal Consolidation In The Oecd And The Euro Area
Pierre Aldama () and
Jerome Creel ()
Working Papers from HAL
This paper presents empirical evidence of asymmetric fiscal policy along the business cycle, using a real-time panel data on 19 OECD countries. We estimate various specifications of fiscal policy rules, in which ex ante fiscal policy has two major objectives: macroeconomic stabilization and fiscal consolidation. First, we find that a symmetric fiscal policy rule may not be an accurate representation of real-time fiscal policy. We find evidence in favor of asymmetric fiscal policy, in particular regarding the response to output gap. Second, fiscal policy appears to be generally procyclical in downturns and a-cyclical in upturns, typically in the Euro Area and during the crisis. Third, we do not find significant evidence of a procyclical fiscal consolidation in the OECD and the Euro Area, although surplus-debt feedback coefficients are generally larger in downturns. Our results are robust to an alternative measure of business cycle and to country exclusion.
Keywords: Fiscal policy rules; Real-time data; Asymmetric stabilization; Fiscal consolidation (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-mac
Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03403071
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Asymmetric macroeconomic stabilization and fiscal consolidation in the OECD and the Euro Area (2020)
Working Paper: Asymmetric Macroeconomic Stabilization And Fiscal Consolidation In The Oecd And The Euro Area (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-03403071
Access Statistics for this paper
More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().