Consumption Smoothing Through Fiscal Policy in OECD and EU Countries

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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Year of publication:	1997
Authors:	Arreaza, A. ; Sorensen, B.E. ; Yosha, O.
Institutions:	Foerder Institute for Economic Research, Eitan Berglas School of Economics
Subject:	DEFICIT \| INCOME \| INSURANCE \| CAPITAL \| RISK \| FINANCIAL MARKET \| CONSUMPTION

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Series:	Tel Aviv.
Type of publication:	Book / Working Paper
Notes:	34 pages
Classification:	E2 - Consumption, Saving, Production, Employment, and Investment ; E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook ; F15 - Economic Integration ; G15 - International Financial Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005647290