Andersen, Asger Lau; Nielsen, Lasse Holbøll Westh - 2010
politicians generates a procyclical bias in government spending. The introduction of fiscal transparency generates two new … redictions: 1) the procyclical bias in fiscal policy arises only in good times; and 2) a higher degree of fiscal transparency … reduces the bias in good times. We find solid empirical support for both predictions using data on both OECD countries and a …
