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How Quickly is News Incorporated in Fiscal Forecasts?

Author

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  • Joao Tovar Jalles

    (Center for Globalization and Governance, Portugal)

Abstract

This paper tests for the existence of information rigidities in private sector budget-balance forecasts in a multi-country context for a sample of G7 countries between 1993 and 2012. We find evidence of information rigidities in fiscal forecast as private forecasters fail to adjust their budget balance forecasts quick enough in response not only to domestic news, but also to news from abroad.

Suggested Citation

  • Joao Tovar Jalles, 2015. "How Quickly is News Incorporated in Fiscal Forecasts?," Economics Bulletin, AccessEcon, vol. 35(4), pages 2802-2812.
    • Handle: RePEc:ebl:ecbull:eb-15-00501
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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I4-P280.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. João Tovar Jalles & Bryn Battersby & Rachel Lee, 2024. "Effectiveness of Fiscal Announcements: Early Evidence from COVID-19," Open Economies Review, Springer, vol. 35(3), pages 623-658, July.

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    More about this item

    Keywords

    budget balance; forecast comparison; information rigidity; Panel VAR; impulse response functions;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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