Afonso, António; Agnello, Luca; Furceri, Davide - 2009
We use a new approach to assess long-term fiscal developments. By analyzing the time varying behaviour of the two … components of government spending and revenue responsiveness and persistence - we are able to infer about the sources of fiscal … equations using a Three-Stage Least Square method. In this way we track fiscal developments, i.e. possible fiscal deteriorations …