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 behaviour. Drawing on quarterly data we estimate...

The focus of this volume is on the European context of public budget policy and a variety of different approaches are used - theoretical modelling, econometrics and applied general equilibrium modelling. Empirical evidence and case studies of European countries are contained in all the papers....

The EU budget review process will restart as we approach the end of the current financial framework 2007-2013. This paper traces the history of the EU budget and draws lessons for the review to come. Whatever reforms are proposed, they must serve to shift spending to policy areas and instruments...