The Cyclical Behaviour of Fiscal Policy: Evidence from the OECD

Philip Lane

Economic Papers from Trinity College Dublin, Economics Department

Abstract: This paper addresses the topic of cyclicality in fiscal policy. In particular, we show that the level of cyclicality varies across spending categories and across OECD countries. In line with leading theories of fiscal cyclicality, we show that countries with volatile output and dispersed political power are the most likely to run procyclical fiscal policies. Wage government consumption is highlighted as the most important channel by which these variables affect fiscal cyclicality

JEL-codes: E62 H50 H60 (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-dge and nep-pbe
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Citations: View citations in EconPapers (43)

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Journal Article: The cyclical behaviour of fiscal policy: evidence from the OECD (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:tcd:tcduee:20022

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