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We examine whether German state governments manipulated fiscal forecasts before elections. Our data set includes three fiscal measures over the period 1980-2014. The results do not show that electoral motives influenced fiscal forecasts in West German states. By contrast, East German state...
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Sweden, we document that governments overestimate short-term GDP growth by 10 to 13 percent during campaign periods. …
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the United States, the United Kingdom, and Sweden, we document that governments overestimate short-term real GDP growth by …
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Fiscal policy constitutes a key tool for business cycle stabilisation next to monetary policy. In this context, having a well-suited macroeconomic model for analysing fiscal policy at a central bank is of primary importance. This paper documents the fiscal block of the ECB-BASE, which is a...
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