There were marked shifts in both the share of national expenditure on education in GDP, as well as in its composition, in 1962-98. At the beginning of the period the share of education in GDP soared, remained relatively constant in the 1970s, declined in the 1980s, and began to rise again in the...

This paper tests the cyclicality of fiscal policy in Israel. We find that deficits are mildly countercyclical, mainly in recessions. Expenditures, and in particular public investment, are procyclical. However, we find that both government deficit and expenditures have become more countercyclical...

This paper uses the Aguiar and Gopinath (2007) methodology in order to estimate whether 'the cycle is the trend' in 23 emerging markets and 22 OECD economies. These estimates are then used to test whether procyclical fiscal policy in emerging countries is due to persistent shocks to per-capita...

This paper examines the optimal reaction of fiscal policy to permanent and transitory shocks to output in a model of tax and public consumption smoothing. The model predicts that optimal reaction of public expenditures and deficits to transitory shocks should be counter cyclical, while optimal...

This paper uses the Aguiar and Gopinath (2007) methodology in order to estimate whether “the cycle is the trend” in 23 emerging markets and 22 OECD economies. These estimates are then used to test whether procyclical fiscal policy in emerging countries is due to persistent shocks to...