Frankel, Jeffrey A.; Végh, Carlos A.; Vuletin, Guillermo - 2011
procyclicality trap and actually become countercyclical. We trace this critical shift in fiscal policy to the quality of institutions …. We provide a formal analysis, which controls for the endogeneity of institutions and other determinants of fiscal … procyclicality, that strongly suggests that there is a causal link running from stronger institutions to less procyclical or …