EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/26313
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorBadinger, Haralden_US
dc.date.accessioned2008-04-11en_US
dc.date.accessioned2009-07-28T08:30:20Z-
dc.date.available2009-07-28T08:30:20Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/26313-
dc.description.abstractThis paper provides a comprehensive empirical assessment of the relation between the cyclicality of fiscal policy, output volatility, and economic growth, using a large cross-section of 88 countries over the period 1960 to 2004. Identification of the effects of (endogenous) cyclical fiscal policy is achieved by exploiting the exogeneity of countries’ political and institutional characteristics, which we find to be relevant determinants of fiscal cyclicality. There are three main results: First, both pro- and countercyclical fiscal policy amplify output volatility, much in a way like pure fiscal shocks that are unrelated to the cycle. Second, output volatility, due to variations in cyclical and discretionary fiscal policy, is negatively associated with economic growth. Third, there is no direct effect of cyclicality of economic growth other than through output volatility. These findings advocate the introduction of fiscal rules that limit the use of (discretionary and) cyclical fiscal policy to improve growth performance by reducing volatility.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2268en_US
dc.subject.jelE3en_US
dc.subject.jelE6en_US
dc.subject.jelH3en_US
dc.subject.jelH8en_US
dc.subject.ddc330en_US
dc.subject.keywordcyclical fiscal policyen_US
dc.subject.keywordoutput volatilityen_US
dc.subject.keywordeconomic growthen_US
dc.subject.keywordinstitutionsen_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwAntizyklische Finanzpolitiken_US
dc.subject.stwKonjunkturen_US
dc.subject.stwVolatilitäten_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwRegelgebundene Politiken_US
dc.subject.stwWelten_US
dc.titleCyclical fiscal policy, output volatility, and economic growthen_US
dc.typeWorking Paperen_US
dc.identifier.ppn561443858en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
561443858.PDF266.67 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.