Cyclical Bias in Government Spending: Evidence from the OECD
AbstractThis paper studies the role of business cycles in the phenomenon of increasing government spending/GDP ratios in the OECD countries. Using a panel data set covering the 1975-1995 period, the main finding is that the prolonged rise in this ratio is linked to a cyclical bias; the spending/GDP ratio increased during recessions and stayed approximately constant during expansions. Also analyzed are the cyclical changes in the composition of government spending (goods and services, transfers and subsidies, and capital expenditure), in tax revenues, and a possible link between the cyclical bias and an index of government weakness.
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Bibliographic InfoPaper provided by Tel Aviv in its series Papers with number 6-99.
Length: 24 pages
Date of creation: 1999
Date of revision:
Contact details of provider:
Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
Web page: http://econ.tau.ac.il/research/foerder.asp
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FISCAL POLICY ; PUBLIC EXPENDITURES ; GOVERNMENT;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
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