Ilzetzki, Ethan; Végh Gramont, Carlos A. - London School of Economics and Political Science; … - 2008
A large empirical literature claims that
fiscal policy in developingcountries is procyclical, in contrast to high …-series methods. We
find that (i)
fiscal policyis indeed procyclical in developing countries and (ii)
fiscal policy is also …-income countries where it is countercyclical. Some authors, however, have questioned this
finding because theliterature has typically …