Afonso, António; Agnello, Luca; Furceri, Davide - Economics Department, Organisation de Coopération et … - 2008
In this working paper, we decompose fiscal policy in three components: i) responsiveness, ii) persistence and iii) discretion. Using a sample of 132 countries, our results point out that fiscal policy tends to be more persistent than responding to output variations. We also found that while the...
