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Consumption Smoothing Through Fiscal Policy in OECD and EU Countries

  • Arreaza, A.
  • Sorensen, B.E.
  • Yosha, O.

We measure the amount of smoothing achieved through various components of the government deficit in Eu and OECD countries. For EU countries, at the 1-year frequency, 13 % of shocks to GDP are smoothed via government consumption, 18 percent via transfers, 5 % via subsidies, while taxes provide no smoothing. The results for OECD countries are similar. Government transfers provide more smoothing of negative than of positive shocks among EU countries.

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Paper provided by Tel Aviv in its series Papers with number 37-97.

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Length: 34 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:teavfo:37-97
Phone: 972-3-640-9255
Fax: 972-3-640-5815
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