A Decomposition of Austria's General Government Budget into Structural and Cyclical Components
AbstractThe paper describes a model for computing the trend output and the structural budget deficit in Austria. The calculation of trend output is based on a production function approach within a small macroeconomic model of the Austrian economy. A decomposition of public budgets into cyclical and structural components shows responsiveness to business cycle variations, and allows a better assessment of the sustainability of the budget balance. The model will be used in future forecasting rounds and links macroeconomic and budgetary variables of the WIFO Economic Outlook to estimates for trend output and the structural budget deficit. Until now, such decomposition has not been part of the regular WIFO forecast.
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Bibliographic InfoPaper provided by WIFO in its series WIFO Working Papers with number 316.
Length: 50 pages
Date of creation: 11 Apr 2008
Date of revision:
Austria; WIFO forecast; WIFO Economic Outlook; trend output; structual budget balance;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-13 (All new papers)
- NEP-EEC-2008-06-13 (European Economics)
- NEP-MAC-2008-06-13 (Macroeconomics)
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