Procyclical and Countercyclical Fiscal Policies in non-Euro EU Member Countries

Aurel Iancu and Dan Olteanu

Working Papers of National Institute for Economic Research from Institutul National de Cercetari Economice (INCE)

Abstract: The aim of this study is to determine the nature of the discretionary fiscal policy practiced by non-euro EU member states, namely to deduce some bias for one of the two types of fiscal policies - procyclical or countercyclical. For this purpose, we used time series for the period 1995-2020, of the cyclically-adjusted primary balance, the output gap, as well as additional indicators - public debt, fiscal rules index and election years. From the signs and magnitude of the correlation and regression coefficients, it results that almost all countries have learned the necessary lessons from the economic / financial crisis, in order to move from a procyclical policy, during 1995-2008, to an countercyclical policy, in 2009-2020.

Keywords: discretionary fiscal policy; fiscal reaction function; procyclicality; countercyclicality; economic cycle (search for similar items in EconPapers)
JEL-codes: E32 E62 E65 H61 H62 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2022-12
New Economics Papers: this item is included in nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.workingpapers.ro/2022/wpince221220.pdf (application/pdf)

Related works:
Journal Article: Procyclical and Countercyclical Fiscal Policies in Non-Euro EU Member Countries (2022)
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:ror:wpince:221220

Access Statistics for this paper

More papers in Working Papers of National Institute for Economic Research from Institutul National de Cercetari Economice (INCE) Contact information at EDIRC.
Bibliographic data for series maintained by Dan Constantin ().