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Automatic Fiscal Stabilisers in Estonia

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Author Info

  • Rasmus Kattai

    ()
    (Bank of Estonia)

  • Alvar Kangur

    ()
    (Bank of Estonia)

  • Tanel Liiv

    ()
    (Bank of Estonia)

  • Martti Randveer

    ()
    (Bank of Estonia)

Abstract

The paper discusses the functioning of automatic fiscal stabilisers in Estonia. The aim of the research is to evaluate government budget sensitivity to economic fluctuations and thereby assess the importance of automatic fiscal stabilisers in Estonia. Specifically we are interested in whether the functioning of automatic fiscal stabilisers might under certain circumstances create difficulties for the fulfilment of the Maastricht deficit criterion according to which the public deficit is not allowed to exceed 3% of GDP.

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File URL: http://biceps.org/assets/docs/bje/BJE_Autumn_Winter_2003.pdf
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Bibliographic Info

Article provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.

Volume (Year): 4 (2003)
Issue (Month): 1 (December)
Pages: 93-115

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Handle: RePEc:bic:journl:v:4:y:2003:i:1:p:93-115

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Related research

Keywords: automatic fiscal stabilisers; structural budget balance; economic cycle; fiscal policy;

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Cited by:
  1. Sigita Grundiza & Dainis Stikuts & Olegs Tkacevs, 2005. "Cyclically Adjusted Balance of Latvia's General Government Consolidated Budget," Working Papers 2005/05, Latvijas Banka.

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