Search results for "Fiscal policy discretion"

showing 3 items of 3 documents

Discretionary Government Consumption, Private Domestic Demand, and Crisis Episodes

2012

This paper analyzes the dynamic impact of discretionary government consumption purchases on private demand. Using a panel of 132 countries from 1960 to 2008, we find that while discretionary changes in government consumption lead to crowding-in effects in the short run, crowding-out effects take over in the medium run. In addition, we also find that both short-term crowding-in and mediumterm crowding out effects are amplified once we control for periods of crisis.

Consumption (economics)Economics and EconometricsGovernmentCrowding inCrowding-inShort runPrivate investmentControl (management)Social SciencesSettore SECS-P/02 Politica EconomicaTake overMonetary economicsPrivate consumptionCrowding outData_GENERALFiscal policy discretionCrowding-outEuropean integrationGDP growthEconomicsOpen Economies Review
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The Determinants of the Volatility of Fiscal Policy Discretion

2014

We investigate the determinants of the volatility of fiscal policy discretion. Using a linear dynamic panel dataset model for 104 countries from 1980 to 2006 and a system-GMM estimator,we find that more government instability, less democracy and presidentialist systems increase the volatility of the discretionary component of fiscal policy. Additionally, we show that countries with a larger size, a smaller degree of financial openness, and a stable exchange rate system are more insured against the uncertainty about the conduct of fiscal policy. Our results are robust to various regional dummy variables, diferent sub-sets of countries and the presence of high inflation and crisis episodes.

MacroeconomicsEconomics and Econometricsmedia_common.quotation_subjectfiscal policy discretionvolatilitySocial SciencesmacroeconomyExchange rateInstitutional frameworAccountingFiscal policy discretion0502 economics and businessEconomics050207 economicsMacroeconomyE31050205 econometrics media_common05 social sciencesCiências Sociais::Economia e GestãoSettore SECS-P/02 Politica Economicapolitical instabilityinstitutional frameworkDiscretionPolitical instabilityFiscal unionDemocracyHigh inflationFiscal policyVolatility8. Economic growth:Economia e Gestão [Ciências Sociais]Volatility (finance)E63FinancePanel data
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Fiscal policy discretion, private spending and crises episodes

2011

In this paper, we assess the impact of fiscal policy discretion on economic activity in the short and medium-term. Using a panel of 132 countries from 1960 to 2008, we find that fiscal policy discretion provides a net stimulus to the economy in the short-run and crowding-in effects are amplified once crisis episodes are controlled for– in particular, banking crises - giving a great scope for fiscal policy stimulus packages. However, crowding-out effects take over in the long-run – especially, in the case of debt crises -, in line with the concerns about long-term debt sustainability.

Settore SECS-P/02 Politica EconomicaFiscal policy discretion GDP growth private consumption private investment crowding-in crowding-out.
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