UID:
edoccha_9958099914502883
Format:
1 online resource (41 p.)
ISBN:
1-4755-7697-8
,
1-4755-2881-7
,
1-4755-2918-X
Series Statement:
IMF Working Papers
Content:
This paper investigates the determinants of fiscal policy behavior and its time-varying volatility, using panel data for a broad set of advanced and emerging market economies during the period 1990–2012. The empirical results show that discretionary fiscal policy is influenced by policy inertia, the level of public debt, and the output gap in both advanced and emerging market economies. In addition, the paper finds that macro-financial factors—such as real exchange rate, financial development, interest rates, asset prices, and natural resource rents—and demographic and institutional factors—such as the old-age dependency ratio, the quality of institutions, and policy anchors such as fiscal rules and IMF-supported stabilization programs—tend to have a significant effect on fiscal policy behavior. The results also indicate that higher government debt leads to more volatile fiscal behavior, while fiscal rules and higher institutional quality reduce the volatility of fiscal policy over time.
Note:
Description based upon print version of record.
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Cover; Contents; I. Introduction; II. Theoretical and Empirical Background; III. Data; IV. Empirical Model and Strategy; V. Interpreting Empirical Results; A. Determinants of Fiscal Policy Behavior; Tables; 1. Fiscal Reaction Functions; 2. Determinants of Fiscal Reaction Functions-All Countries; 3. Determinants of Fiscal Reaction Functions-Advanced Countries; 4. Determinants of Fiscal Reaction Functions-Emerging Markets; 5. Determinants of Fiscal Policy Volatility-All Countries; 6. Determinants of Fiscal Policy Volatility-Advanced Countries
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7. Determinants of Fiscal Policy Volatility-Emerging MarketsB. Determinants of Fiscal Policy Volatility; VI. Robustness Checks; VII. Conclusions; References; Appendix; Data; Appendix Tables; 1. Country Sample; 2. Descriptions of Variables and Data Sources; 3. Summary Statistics; 4. Unit Root Tests; 5. System GMM Dynamic Panel by Period; 6. Residual-based Volatility-All Countries; Appendix Figures; 1. Budget Balance and Government Debt, 1990-2012; 2. Fiscal Policy Volatility, 1990-2012; 3. Overall Budget and Gross Debt Distribution; 4. Cyclically adjusted budget balance vs. Gross Debt
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5. Cyclically adjusted budget balance vs. Output Gap6. Cyclically adjusted budget balance vs. GDP per capita
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English
Additional Edition:
ISBN 1-4755-1611-8
Additional Edition:
ISBN 1-306-67423-9
Language:
English
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