Cyclically adjusted budget balance (CAB) is a widely cited and widely used concept in the evaluation of fiscal situations. The key idea behind it involves the identification of potential levels of economic variables. There are two recently used methods: the aggregate approach and the...

Cyclically adjusted budget deficit (CAB) is a widely cited and used concept in the evaluation of fiscal situation. The key idea behind it is to separate temporary and/or non-discretionary effects on budget deficit from the underlying balance and/or effects of discretionary measures of fiscal...

The economic recession dampened tax revenues, causing deterioration – partly temporary, partly permanent – in the general government balance. The fiscal position can be assessed realistically if we can determine the level of revenue and deficit in the medium run. In order to do this, we...

Cyclically adjusted budget balance (CAB) is a widely cited and widely used concept in the evaluation of fiscal situations. The key idea behind it involves the identification of potential levels of economic variables. There are two recently used methods: the aggregate approach and the...