Fiscal policy reaction to the cycle in the OECD: pro- or counter-cyclical?

Mondes en développement, 2014, vol. n° 167, issue 3, 35-52

Abstract: This paper analyses the reaction of fiscal policy to the cycle in OECD countries. The results suggest that while overall government balances were counter-cyclical in the past and more so in economic downturns than in upswings, discretionary fiscal policy was neutral on average. However, discretionary fiscal policy appears to react to the cycle in a non-linear fashion: fiscal policy in countries with high public debt and high government deficits tends to be pro-cyclical, while countries that have low public debt and that have surpluses are more likely to conduct a counter-cyclical fiscal policy. The paper also finds that asset prices have a significant impact on government balances.

Keywords: Politique budgétaire; procyclique; contracyclique; pays de l'OCDE; fiscal policy; pro-cyclicality; counter-cyclicality; OECD countries (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=MED_167_0035 (application/pdf)
http://www.cairn.info/revue-mondes-en-developpement-2014-3-page-35.htm (text/html)
free

Related works:
Working Paper: Fiscal policy reaction to the cycle in the OECD: pro- or counter-cyclical? (2014)
Working Paper: Fiscal Policy Reaction to the Cycle in the OECD: Pro- or Counter-Cyclical? (2012)
Working Paper: Fiscal Policy Reaction to the Cycle in the OECD: Pro- or Counter-cyclical? (2012)
Working Paper: Fiscal Policy Reaction to the Cycle in the OECD: Pro- or Counter-cyclical? (2012)
Working Paper: Fiscal Policy Reaction to the Cycle in the OECD: Pro- or Counter-cyclical? (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:meddbu:med_167_0035

Access Statistics for this article

More articles in Mondes en développement from De Boeck Université
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().