OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN : 18151973 (en ligne)
- https://doi.org/10.1787/18151973
Fiscal Policy Responsiveness, Persistence, and Discretion
In this working paper, 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 responding to output variations. We also found that while the effect of cross-country
covariates is positive (negative) for discretion, it is negative (positive) for persistence, 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.
Mots-clés: fiscal volatility, fiscal policy
JEL:
E62: Macroeconomics and Monetary Economics / Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook / Fiscal Policy;
H50: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: General
- Cliquez pour accéder
-
Cliquer pour télécharger le fichier PDF - 971.86KBPDF