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Impact of a Change in Public Spending Policies on Margins and Business Cycles in OECD Countries

Author

Listed:
  • Royen, M.-C.

Abstract

This paper analyses how government policies can affect the steady state margins and output in European countries. It draws heavily on a study realized by Aziz J. and Leruth L. (1997), who show that the government can the cyclical behaviour of the economy by changing the composition of public outlays between current and capital expenditure. The authors analyse the behaviour of OECD margins and output, over the 1970-1992 period, caused by changes in the composition as well as in the level of public spending. They show that the impact in European countries is lower than in the US postwar economy, partly reflecting alternative assumptions on the level of margins.

Suggested Citation

  • Royen, M.-C., 1998. "Impact of a Change in Public Spending Policies on Margins and Business Cycles in OECD Countries," Liege - Groupe d'Etude des Mathematiques du Management et de l'Economie 9819, UNIVERSITE DE LIEGE, Faculte d'economie, de gestion et de sciences sociales, Groupe d'Etude des Mathematiques du Management et de l'Economie.
    • Handle: RePEc:fth:gemame:9819
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    Cited by:

    1. Jahangir Aziz & Luc Leruth, 1999. "Cyclical Effects of the Composition of Government Purchases," Macroeconomics 9902007, University Library of Munich, Germany.

    More about this item

    Keywords

    PUBLIC POLICY ; PUBLIC EXPENDITURES ; BUSINESS CYCLES;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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