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Fiscal Fragility : What the Past May Say About the Future

Aizenman, Joshua - 2010

neglected perspective that the vulnerabilities associated with a given public debt/GDP increase with the future volatility of …

Persistent link: https://www.econbiz.de/10013136745

Fiscal Space and Government-Spending & Tax-Rate Cyclicality Patterns : A Cross-Country Comparison, 1960-2016

Aizenman, Joshua - 2018

This paper compares fiscal cyclicality across advanced and developing countries, geographic regions as well as income levels over 1960–2016 period, then identifies factors that explain countries' government spending and tax-policy cyclicality. Public debt/tax base ratio provides a more robust...

Persistent link: https://www.econbiz.de/10012911464

Tax Base Variability and Procyclical Fiscal Policy

Talvi, Ernesto; Végh, Carlos A. - 2021

Based on a sample of 56 countries, we find that while fiscal policy in the G-7 countries appears to be broadly consistent with Barro's tax smoothing proposition, in developing countries government spending and taxes are highly procyclical (i.e., government spending rises and taxes fall during...

Persistent link: https://www.econbiz.de/10013221510

Why is Fiscal Policy Often Procyclical?

Alesina, Alberto; Tabellini, Guido Enrico - 2021

Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for...

Persistent link: https://www.econbiz.de/10013240582

The Design of Fiscal Adjustments

Alesina, Alberto - 2012

This paper offers three results. First, in line with the previous literature, we confirm that fiscal adjustments based mostly on the spending side are less likely to be reversed. Second, spending based fiscal adjustments have caused smaller recessions than tax based fiscal adjustments. Finally,...

Persistent link: https://www.econbiz.de/10013100133

Large Changes in Fiscal Policy : Taxes Versus Spending

Alesina, Alberto - 2010

We examine the evidence on episodes of large stances in fiscal policy, both in cases of fiscal stimuli and in that of fiscal adjustments in OECD countries from 1970 to 2007. Fiscal stimuli based upon tax cuts are more likely to increase growth than those based upon spending increases. As for...

Persistent link: https://www.econbiz.de/10013150446

Cross-Country Evidence on the Link between Volatility and Growth

Ramey, Garey; Ramey, Valerie A. - 2021

volatility of economic fluctuations. In a sample of 92 countries as well as a sample of OECD countries, we find that countries … with higher volatility have lower growth. The addition of standard control variables strengthens the negative relationship …. We also find that government spending-induced volatility is negatively associated with growth even after controlling for …

Persistent link: https://www.econbiz.de/10013218817

Aggregate Hours Worked in OECD Countries : New Measurement and Implications for Business Cycles

Ohanian, Lee E. - 2011

fraction of labor market adjustment takes place along the intensive margin outside the United States, and that the volatility … of total hours relative to output volatility has increased over time in almost all countries. We use these data to re …

Persistent link: https://www.econbiz.de/10013120295

The Extensive Margin, Sectoral Shares and International Business Cycles

Devereux, Michael B. - 2011

This paper documents some previously neglected features of sectoral shares at business cycle frequencies in OECD economies. In particular, we find that the nontraded sector share of output is as volatile as aggregate GDP, and that for most countries, the nontraded sector is distinctly...

Persistent link: https://www.econbiz.de/10013121594

Business Cycle Volatility and Openness : An Exploratory Cross-Section Analysis

Razin, Asaf; Rose, Andrew - 2022

This paper links business cycle volatility to barriers on international mobility of goods and capital. Theory predicts … that capital market integration should lower consumption volatility while raising investment volatility, if most shocks are … volatility. We test these ideas using a unique panel data set which includes indicators of barriers to trade in both goods and …

Persistent link: https://www.econbiz.de/10014074148