Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/45288
Authors: 
Stanécík, Juraj
Välilä, Timo
Year of Publication: 
2010
Series/Report no.: 
Economic and financial reports / European Investment Bank 2010/02
Abstract: 
We consider the impact of both cyclical and structural changes in the fiscal stance on public spending composition for a panel of EU countries, including individual components of public investment. We find that both cyclically-induced and structural changes in the fiscal stance affect the composition of public spending, with fiscal tightening of both types increasing the relative share of investment and loosening favouring consumption expenditure. Of the components of public investment, infrastructure and redistribution respond to cyclical changes in the fiscal stance, while investment in hospitals and schools responds most clearly to structural changes.
Subjects: 
fiscal policy
public expenditure
fiscal stance
JEL: 
E62
H50
H62
C33
Document Type: 
Working Paper

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