Fiscal policy and the banking system in Italy: have taxes, public spending and banks been procyclical in the long-run?

Arbeitspapier

This paper analyses the relations between the banking system fluctuations, on one hand, and taxation and public spending, on the other one, using a VECM methodology. We find some evidence of prociclicality of fiscal policy using variables such as government spending, taxes, and primary surplus. Effects in the opposite direction are much smaller. Results are quite stable over time. - Credit cycles ; fiscal policy ; procyclicality

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2442

Classification and Topics

• Classification: Wirtschaft ; Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: Europe: Pre-1913 ; Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: Europe: 1913- ; Business Fluctuations; Cycles ; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
• Subject: Kredit ; Konjunktur ; Finanzpolitik ; Steuer ; Öffentliche Ausgaben ; Italien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Piluso, Giandomenico ; Ricciuti, Roberto
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/26487