Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153191
Authors: 
Lamo, Ana
Pérez, Javier J.
Schuknecht, Ludger
Year of Publication: 
2007
Series/Report no.: 
ECB Working Paper 757
Abstract: 
This study examines the business cycle behaviour of public consumption and its main components; the public wage bill (including compensation per employee and public employment) and intermediate consumption in the euro area aggregate, euro area countries and a group of selected non-euro area OECD countries (Denmark, Sweden, the UK, Japan and the US). It looks across a large number of variables and methods, using annual data from 1960 to 2005. It finds robust evidence supporting that public consumption, wages and employment co-move with the business cycle in a pro-cyclical manner with 1-2 year lags, notably for the euro area aggregate and euro area countries. The findings reflect mainly the correlation between cyclical developments (automatic stabilizers), but also point to the important role of pro-cyclical discretionary fiscal policies.
Subjects: 
filtering
Public consumption
public employment
public wages
stylized facts
thick modelling
JEL: 
E62
E63
H50
Document Type: 
Working Paper

Files in This Item:
File
Size
734.75 kB





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