This work investigates the hypothesis of fiscal sustainability for 18 Latin American countries from 1991 to 2022. We applied a panel cointegration methodology to evaluate the existence of a long-term relationship between government revenue and expenditures, incorporating cross-sectional...

This paper analyses the reaction of fiscal policy to the cycle in OECD countries. The results suggest that while overall government balances were counter-cyclical in the past and more so in economic downturns than in upswings, discretionary fiscal policy was neutral on average. However,...

This paper introduces a concern for model misspecification in a Lucas-Stokey optimal fiscal policy setting. The representative household in this economy is endowed with the knowledge of a reference model for the government spending process but acknowledges that this model is potentially...

In many developing countries, government cash management is misperceived as synonymous to budget execution, accounting control, or debt management, instead of as a practice that aims to cost-effectively manage government cash positions, including their risks. They often neglect the significant...

The new German government plans to increase investment spending considerably, yet without increasing taxes or reforming the debt brake enshrined in the constitution. This article explores the government’s (un)conventional approaches to squaring this circle.

How much fiscal space do Latin American countries have to increase their tax burdens in the long term? This paper provides an answer through Laffer curves estimates for taxes on labor, capital, and consumption for the six largest emerging economies of the region: Argentina, Brazil, Chile,...

This paper analyses the impact of public expenditures and tax revenues on non‑oil economic growth in Azerbaijan for the period of 2000Q1‑2015Q2 by employing OLS, ARDL, FMOLS, DOLS, CCR and Granger Causality techniques. Different cointegration methods result in consistent results. In this...

The "Great Lockdown" implemented in response to the COVID-19 pandemic has led to a severe world-wide economic crisis. In euro area countries, sovereign debt-to-GDP ratios are on the rise and reductions in expected fiscal surpluses raise sustainability concerns amongst investors. This paper...

Over the 20-year period from 1991 to 2010, changes to the Government of Jamaica's budget or fiscal behaviour have not differed, according to the political administration in power. During that period, the Ministries of Education, Health, and National Security consistently received budgetary...