Fiscal Regime Shifts in Portugal

Antonio Afonso, Peter Claeys and Ricardo Sousa

No 200921, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: We estimate changes in fiscal policy regimes in Portugal with a Markov Switching regression of fiscal policy rules for the period 1978-2007, using a new dataset of fiscal quarterly series. We find evidence of a deficit bias, while repeated reversals of taxes making the budget procyclical. Economic booms have typically been used to relax tax pressure, especially during elections. One-off measures have been preferred over structural ones to contain the deficit during economic crises. The EU fiscal rules prompted temporary consolidation, but did not permanently change the budgeting process.

Keywords: fiscal regimes; Markov Switching; Portugal. (search for similar items in EconPapers)
Pages: 28 pages
Date: 2009-10, Revised 2009-10
New Economics Papers: this item is included in nep-pbe
References: Add references at CitEc
Citations: View citations in EconPapers (37)

Downloads: (external link)
http://www.ub.edu/irea/working_papers/2009/200921.pdf (application/pdf)

Related works:
Journal Article: Fiscal regime shifts in Portugal (2011)
Working Paper: Fiscal Regime Shifts in Portugal (2009)
Working Paper: Fiscal Regime Shifts in Portugal (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:ira:wpaper:200921

Access Statistics for this paper

More papers in IREA Working Papers from University of Barcelona, Research Institute of Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by Alicia García ().