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The cyclicality of education, health, and social security government spending

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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 the cyclicality of education, health and social security government spending. We mostly find acyclical behaviour, but evidence also points to counter-cyclicality for social security spending, particularly in OECD countries, consistent with the operation of automatic stabilizers.

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File URL: http://hdl.handle.net/10.1080/13504851.2012.730125
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Bibliographic Info

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

Volume (Year): 20 (2013)
Issue (Month): 7 (May)
Pages: 669-672

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Handle: RePEc:taf:apeclt:v:20:y:2013:i:7:p:669-672

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  1. Alberto Alesina & Guido Tabellini, 2005. "Why is Fiscal Policy often Procyclical?," CESifo Working Paper Series 1556, CESifo Group Munich.
  2. M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
  3. Ugo Panizza & Dany Jaimovich, 2007. "Procyclicality or Reverse Causality?," IDB Publications 6843, Inter-American Development Bank.
  4. Philip R. Lane & Aaron Tornell, 1999. "The Voracity Effect," American Economic Review, American Economic Association, vol. 89(1), pages 22-46, March.
  5. Ethan Ilzetzki & Carlos A. Vegh, 2008. "Procyclical Fiscal Policy in Developing Countries: Truth or Fiction?," NBER Working Papers 14191, National Bureau of Economic Research, Inc.
  6. Sanjeev Gupta & Alejandro Hajdenberg & Javier Arze del Granado, 2010. "Is Social Spending Procyclical?," IMF Working Papers 10/234, International Monetary Fund.
  7. Julia Darby & Jacques Melitz, 2008. "Social spending and automatic stabilizers in the OECD," Economic Policy, CEPR & CES & MSH, vol. 23, pages 715-756, October.
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Cited by:
  1. Walid Qazizada & Engelbert Stockhammer, 2014. "Government spending multipliers in contraction and expansion," Working Papers PKWP1404, Post Keynesian Economics Study Group (PKSG).

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