IDEAS home Printed from https://ideas.repec.org/a/bpj/germec/v14y2013i1p73-88.html

Is Fiscal Policy Procyclical in the Euro Area?

Author

Listed:
  • Huart Florence

    (University Lille 1, Cité Scientifique,Villeneuve-d'Ascq, France)

Abstract

We test the relationship between the cyclically adjusted primary balance and alternative indicators of cyclical conditions for the euro area and 18 OECD countries over the period 1970-2009. A countercyclical stance of discretionary fiscal policy is found during bad times after 1999 in the euro area as a whole and in a few member countries only (France, Ireland and The Netherlands). It is also associated with high public deficits or low public debts. There is no significant case of procyclical fiscal policy after 1999, neither in good times nor in bad times.

Suggested Citation

  • Huart Florence, 2013. "Is Fiscal Policy Procyclical in the Euro Area?," German Economic Review, De Gruyter, vol. 14(1), pages 73-88, February.
    • Handle: RePEc:bpj:germec:v:14:y:2013:i:1:p:73-88
    DOI: 10.1111/geer.12000
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/geer.12000
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1111/geer.12000?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oliver Landmann, 2018. "On the Logic of Fiscal Policy Coordination in a Monetary Union," Open Economies Review, Springer, vol. 29(1), pages 69-87, February.
    2. Carnazza, Giovanni & Renström, Thomas I. & Spataro, Luca, "undated". "Is public debt environmentally friendly? The role of EU fiscal rules on environmental quality: An empirical assessment," FEEM Working Papers 339126, Fondazione Eni Enrico Mattei (FEEM).
    3. Pierre Aldama & Jérôme Creel, 2020. "Asymmetric macroeconomic stabilization and fiscal consolidation in the OECD and the Euro Area," Documents de Travail de l'OFCE 2020-09, Observatoire Francais des Conjonctures Economiques (OFCE).
    4. Carnazza, Giovanni & Liberati, Paolo & Sacchi, Agnese, 2025. "Does politics matter? A comparative assessment of discretionary fiscal policies in the euro area," European Journal of Political Economy, Elsevier, vol. 90(PA).
    5. Heimberger, Philipp, 2023. "The cyclical behaviour of fiscal policy: A meta-analysis," Economic Modelling, Elsevier, vol. 123(C).
    6. Giovanni Carnazza & Thomas I. Renström & Luca Spataro, 2023. "Is public debt environmentally friendly? The role of EU fiscal rules on environmental quality: An empirical assessment," Working Papers 2023.26, Fondazione Eni Enrico Mattei.
    7. Kallal, Sami, 2025. "Is fiscal countercyclicality growth enhancing? Evidence from developing countries over the period 1990–2019," The Journal of Economic Asymmetries, Elsevier, vol. 32(C).
    8. repec:spo:wpmain:info:hdl:2441/5a3rl1um0d9rdbe3itnk6f8m89 is not listed on IDEAS
    9. Combes, Jean-Louis & Minea, Alexandru & Sow, Moussé, 2017. "Is fiscal policy always counter- (pro-) cyclical? The role of public debt and fiscal rules," Economic Modelling, Elsevier, vol. 65(C), pages 138-146.
    10. Kallal, Sami & Guetat, Imène, 2020. "Fiscal stance, election year and 2007 crisis, evidence from OECD countries (1980–2017)," The Journal of Economic Asymmetries, Elsevier, vol. 21(C).
    11. Magdalena Kąkol, 2017. "Designing a fiscal union for the euro area," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 16(4), pages 413-432, December.
    12. Giovanni Carnazza & Francesco Tomasone, 2026. "Point break: When fiscal rules turn pro-cyclical – Evidence from debt thresholds in the European Union," Working Papers in Public Economics 279, Department of Economics and Law, Sapienza University of Rome.
    13. Jesús Ferreiro & Catalina Gálvez & Ana González, 2015. "Fiscal Policies in the European Union during the Crisis," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(2), pages 131-155, June.
    14. M. K. Alabi & K. Amirthalingam, 2020. "Fiscal Policy and the Business Cycle in the West African Monetary Zone," Working Papers 8, Department of Economics, University of Ilorin.
    15. Attinasi, Maria Grazia & Palazzo, Alessandra Anna & Pierluigi, Beatrice, 2019. "Fiscal activism in the euro area and in other advanced economies: new evidence," Working Paper Series 2344, European Central Bank.
    16. Aldama, Pierre & Creel, Jérôme, 2022. "Real-time fiscal policy responses in the OECD from 1997 to 2018: Procyclical but sustainable?," European Journal of Political Economy, Elsevier, vol. 73(C).
    17. Christoph Peatz, 2020. "Fiscal Rules in Good Times and Bad," IMK Working Paper 206-2020, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:germec:v:14:y:2013:i:1:p:73-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.