Alberola, Enrique; Mínguez, José M. González; Cos, … - In: Hacienda Pública Española (2003) 3, pp. 151-181
Observed budget balances are an imperfect indicator of the fiscal policy stance, because fluctuations in economic activity induce automatic changes in the balance, hence the use of cyclically-adjusted balances (CAB). However, this paper shows that CABs (as measured through one of the two methods...