Fiscal Stabilisation Policy and Fiscal Institutions

Campbell Leith and Simon Wren-Lewis

No 7, WEF Working Papers from ESRC World Economy and Finance Research Programme, Birkbeck, University of London

Abstract: In this paper we analyse countercyclical fiscal policy within the context of a microfounded analysis of business cycle stabilisation. We show that tax and spending instruments can have a useful counter cyclical role, even after allowing for the distortionary nature of the instruments and the need for debt sustainability. A critical barrier to the use of fiscal instruments may be political economy concerns, and we survey recent suggestions involving alternative fiscal policy institutions.

Date: 2006-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldeconomyandfinance.org/working_pape ... per_PDFs/WEF0007.pdf (application/pdf)

Related works:
Journal Article: Fiscal Stabilization Policy and Fiscal Institutions (2005)
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:wef:wpaper:0007

Access Statistics for this paper

More papers in WEF Working Papers from ESRC World Economy and Finance Research Programme, Birkbeck, University of London Contact information at EDIRC.
Bibliographic data for series maintained by Tim Byne ( this e-mail address is bad, please contact ).