Cevik, Serhan; Teksoz, Katerina - In: Journal of Banking and Financial Economics 2 (2014) 2, pp. 5-33
This paper investigates the determinants of fiscal policy behavior and its time-varying volatility, using panel data … discretionary fiscal policy is influenced by policy inertia, the level of public debt, and the output gap in both advanced and …) tend to have a significant effect on fiscal policy behavior. The results also indicate that higher government debt leads to …