Government size and business cycle volatility: How important are credit constraints?

Arbeitspapier

In this paper we analyze how the availability of credit influences the relationship between government size as a proxy for fiscal stabilization policy and the amplitude of business cycle fluctuations in a sample of advanced OECD countries. Interpreting relatively low loan-tovalue ratios as an indication for tight credit constraints, we find that government size exerts a stabilizing effect on output and consumption growth fluctuations only when credit constraints are relatively tight. Our results are robust with respect to different measures of government size and provide support for the hypothesis that credit market frictions play a crucial role in the transmission of fiscal policy.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper Series in Economics ; No. 237

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policy ; Business Fluctuations; Cycles
• Thema: Business cycle ; volatility ; fiscal policy ; stabilization policy ; Staatsquote ; Finanzpolitik ; Verschuldungsrestriktion ; Konjunktur ; Volatilität ; Schätzung ; OECD-Staaten

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Leibrecht, Markus ; Scharler, Johann
• Ereignis: Veröffentlichung
• (wer): Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
• (wo): Lüneburg
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/73169
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ