Cyclical and Structural Budget Deficits - tutor2u
网页2018年7月3日 · Cyclical fiscal balance. The size of the fiscal deficit is influenced by the state of the economy: in a boom, tax receipts are relatively high and spending on unemployment benefit is low. Structural fiscal balance. The structural deficit is that part of the deficit which is not related to the state of the economy.
How Should the Fiscal Stance Be Assessed? - IMF
网页Essentially, calculation of a cyclically adjusted or structural balance involves an estimation of what revenues and cyclically adjusted expenditure (and thus the deficit) would be if the economy were at its potential or--for some measures of the structural balance--its trend output, rather than its actual output. 9.
网页Cyclically adjusted and structural balances are used extensively in an effort to explain how sharply deteriorating fiscal balances relate to changes in the macroeconomic environment (IMF, 2010a). The main purpose of cycli-cal adjustment is to arrive at an estimate of the fiscal position net of cyclical effects.
The cyclical behaviour of fiscal policy: A meta-analysis
网页2023年6月1日 · Our “best-practice” assumptions refer to an estimate for the (primary) fiscal deficit while tackling endogeneity between fiscal policy and cyclical conditions. Under these assumptions, our model predicts an underlying cyclicality of fiscal policy of −0.16 for advanced countries with a 95% confidence interval (CI) from −0.18 to −0.14 ...
Structural Budget Deficits and Fiscal Stance - OECD iLibrary
网页1984年7月1日 · Revenues automatically rise as the economy expands; unemployment transfers are reduced, leaving a deficit or surplus at the cyclical peak which may be termed a "structural" budget balance. The "built-in stabilizer" component of the deficit should be self-cancelling as the cyclical output gap is closed so that it is temporary and non …
3 Cyclicality of Fiscal Policy in: Promoting Fiscal Discipline
网页This chapter examines the cyclical properties of fiscal policy and explores three issues: the extent of procyclicality in both industrial and developing countries; the factors underlying the observed pattern of procyclicality; and the consequences of procyclicality, including the impact on countries’ debt ratios.
Cyclical Budgetary Policy and Economic Growth: What Do We …
网页Using panel specifications with country- and year-fixed effects, we show that: (a) an increase in financial development, a decrease in openness to trade, and the adoption of an inflation-targeting regime move countries toward a more countercyclical budget deficit; (b) a more countercyclical budget deficit has a positive and significant effect ...
Revisiting the Countercyclicality of Fiscal Policy - IMF
网页2023年4月29日 · Empirical results show that (i) fiscal policy tends to be more counter-cyclical during severe crises than typical recessions, especially for advanced economies; (ii) fiscal counter-cyclicality has increased over time for many economies over the last two decades; (iii) discretionary and automatic countercyclicality are both strong in advanced ...
How Does Fiscal Policy Impact the Budget Deficit? - Investopedia
网页2024年9月15日 · The effect operates through a series of interconnected spending and income flows such as initial spending, increased business revenue, increased income to workers, increased consumer spending, and...
Fiscal rules and procyclicality: an empirical analysis
网页2019年2月11日 · Fiscal policy is pro-cyclical in many economies, particularly in emerging market economies, which could adversely impact growth and welfare. On the contrary, a countercyclical fiscal policy is desirable as it can play a stabilising role by smoothing output fluctuations across the cycle.
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