Coricelli, Fabrizio; Fiorito, Riccardo - Dipartimento di Economia e Finanza (DEF), Libera … - 2013
In this paper we suggest a new measure of discretionary government spending for OECD countries over the period 1980-2011. To identify the components of discretionary expenditure, we use the volatility and persistence properties of the expenditure series. Discretionary policy cannot be inertial...