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Euro area time-varying cyclicality of fiscal policy

Bibliographic Details
Main Author: Afonso, António
Publication Date: 2021
Other Authors: Carvalho, Francisco Tiago
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10400.5/22551
Summary: We assess the cyclicality of fiscal policy in the 19 Euro area countries, notably during recessions, for the period 1995-2020. We use a time-varying measure of fiscal cyclicality to describe fiscal policy developments. The results suggest that during recessions discretionary fiscal policy becomes more pro-cyclical, but the overall budget balance becomes more counter- cyclical. Hence, pursuing a Ricardian fiscal regime by more indebted countries leads to higher counter-cyclicality of fiscal policy. Government size reduces counter-cyclicality, as well as trade openness, and financial development has a positive impact on counter-cyclicality.
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spelling Euro area time-varying cyclicality of fiscal policyFiscal PolicyCyclicalityTime-varying coefficientEuro areaWe assess the cyclicality of fiscal policy in the 19 Euro area countries, notably during recessions, for the period 1995-2020. We use a time-varying measure of fiscal cyclicality to describe fiscal policy developments. The results suggest that during recessions discretionary fiscal policy becomes more pro-cyclical, but the overall budget balance becomes more counter- cyclical. Hence, pursuing a Ricardian fiscal regime by more indebted countries leads to higher counter-cyclicality of fiscal policy. Government size reduces counter-cyclicality, as well as trade openness, and financial development has a positive impact on counter-cyclicality.ISEG - REM – Research in Economics and MathematicsRepositório da Universidade de LisboaAfonso, AntónioCarvalho, Francisco Tiago2021-11-13T17:54:31Z2021-112021-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/22551engAfonso, António e Francisco Tiago Carvalho (2021). "Euro area time-varying cyclicality of fiscal policy". Instituto Superior de Economia e Gestão – REM Working paper series nº 0202 – 20212184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-03-17T16:27:34Zoai:repositorio.ulisboa.pt:10400.5/22551Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T04:15:35.049008Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Euro area time-varying cyclicality of fiscal policy
title Euro area time-varying cyclicality of fiscal policy
spellingShingle Euro area time-varying cyclicality of fiscal policy
Afonso, António
Fiscal Policy
Cyclicality
Time-varying coefficient
Euro area
title_short Euro area time-varying cyclicality of fiscal policy
title_full Euro area time-varying cyclicality of fiscal policy
title_fullStr Euro area time-varying cyclicality of fiscal policy
title_full_unstemmed Euro area time-varying cyclicality of fiscal policy
title_sort Euro area time-varying cyclicality of fiscal policy
author Afonso, António
author_facet Afonso, António
Carvalho, Francisco Tiago
author_role author
author2 Carvalho, Francisco Tiago
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Afonso, António
Carvalho, Francisco Tiago
dc.subject.por.fl_str_mv Fiscal Policy
Cyclicality
Time-varying coefficient
Euro area
topic Fiscal Policy
Cyclicality
Time-varying coefficient
Euro area
description We assess the cyclicality of fiscal policy in the 19 Euro area countries, notably during recessions, for the period 1995-2020. We use a time-varying measure of fiscal cyclicality to describe fiscal policy developments. The results suggest that during recessions discretionary fiscal policy becomes more pro-cyclical, but the overall budget balance becomes more counter- cyclical. Hence, pursuing a Ricardian fiscal regime by more indebted countries leads to higher counter-cyclicality of fiscal policy. Government size reduces counter-cyclicality, as well as trade openness, and financial development has a positive impact on counter-cyclicality.
publishDate 2021
dc.date.none.fl_str_mv 2021-11-13T17:54:31Z
2021-11
2021-11-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/22551
url http://hdl.handle.net/10400.5/22551
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Afonso, António e Francisco Tiago Carvalho (2021). "Euro area time-varying cyclicality of fiscal policy". Instituto Superior de Economia e Gestão – REM Working paper series nº 0202 – 2021
2184-108X
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISEG - REM – Research in Economics and Mathematics
publisher.none.fl_str_mv ISEG - REM – Research in Economics and Mathematics
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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