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Fiscal volatility, financial crises and growth

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  • Ant�nio Afonso
  • Jo�o Tovar Jalles

Abstract

We use a panel of developed and emerging countries for the period 1970 to 2008 to assess how fiscal policy volatility and financial crises affect growth. We find that economic growth is lower in the presence of more volatile fiscal policy. Moreover, with a financial crisis government spending is stickier than revenue.

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File URL: http://hdl.handle.net/10.1080/13504851.2012.667531
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 19 (2012)
Issue (Month): 18 (December)
Pages: 1821-1826

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Handle: RePEc:taf:apeclt:v:19:y:2012:i:18:p:1821-1826

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Cited by:
  1. Adnan Efendić & Naida Trkic-Izmirlija, 2013. "Effects of the global economic crisis and public spending on income distribution in Bosnia and Herzegovina," wiiw Balkan Observatory Working Papers 108, The Vienna Institute for International Economic Studies, wiiw.
  2. Eugenia-Ramona Mara, 2012. "Determinants of fiscal budget volatility in old versus new EU member states," Working Papers Department of Economics 2012/31, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.

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