Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82339
Authors: 
Abildgren, Kim
Year of Publication: 
2005
Series/Report no.: 
Danmarks Nationalbank Working Papers 30
Abstract: 
The paper presents time series for Danish general government net lending in the period 1875-2003 and analyses the long-term term fiscal development in Denmark. Even though Denmark today has one of the largest public sectors in Europe, relatively speaking, the Danish general government's deficit has only significantly exceeded 3 per cent of GDP during World War II and in the early 1980s. Furthermore, the cyclical impact on the general government budget balance seems most often to be relatively modest compared to that of discretionary fiscalpolicy changes. However, calculations on the cyclical budget volatility also seem to suggest that the cyclically adjusted budget balance has to be in surplus in periods with strong economic growth if the automatic stabilisers should be allowed to work freely during a cyclical downturn without violating a 3-per-cent budget criteria (the reference value in the Maastricht Treaty).
Subjects: 
historical statistics
cyclical adjustment
government budget
business cycles
fiscal policy
Maastricht Treaty
JEL: 
E32
E62
N23
N24
Document Type: 
Working Paper

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