Fiscal policy responsiveness, persistence and discretion

Arbeitspapier

We decompose fiscal policy in three components: i) responsiveness, ii) persistence and iii) discretion. Using a sample of 132 countries, our results point out that fiscal policy tends to be more persistent than to respond to output conditions. We also found that while the effect of cross-country covariates is positive (negative) for discretion, it is negative (positive) for persistence thereby suggesting that countries with higher persistence have lower discretion and vice versa. In particular, while government size, country size and income have negative effects on the discretion component of fiscal policy, they tend to increase fiscal policy persistence.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 954

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; National Government Expenditures and Related Policies: General
• Subject: Fiscal Policy ; Fiscal Volatility ; Finanzpolitik ; Verantwortung ; Nachhaltigkeit ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Afonso, António ; Agnello, Luca ; Furceri, Davide
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/153388
• Last update: 10.03.2025, 11:44 AM CET