Stochastic trends, debt sustainability and fiscal policy /

Stochastic trends, debt sustainability and fiscal policy /

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Bibliographic Details
Author / Creator:	Barhoumi, Karim, (IMF staff)
Imprint:	[Washington, D.C.] : International Monetary Fund, 2016. ©2016
Description:	1 online resource (45 pages) : illustrations.
Language:	English
Series:	IMF Working Paper ; WP/16/59 IMF working paper ; WP/16/59.
Subject:	Fiscal policy -- Econometric models. Business cycles -- Econometric models. Debts, Public -- Econometric models. Business cycles -- Econometric models. Debts, Public -- Econometric models. Fiscal policy -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12504822

Hidden Bibliographic Details
Other authors / contributors:	Cherif, Reda, (IMF staff) Rebei, Nooman, 1972- (IMF staff) International Monetary Fund. Institute for Capacity Development, issuing body. International Monetary Fund. African Department, issuing body.
ISBN:	1513574671 9781513574677 9781513574677 1513575716 9781513575711 1513577123 9781513577128
ISSN:	1018-5941
Notes:	"Institute for Capacity Development and African Department." "March 2016." Includes bibliographical references (pages 28-30). Online resource; title from pdf title page (IMF.org Web site, viewed March 16, 2016).
Summary:	We study empirically the reaction of fiscal policy to changes in the permanent and transitory components of GDP in a panel of countries. We find evidence that government spending tends to be counter-cyclical conditional on temporary shocks and pro-cyclical conditional on permanent shocks. We also find no evidence that developing countries are systematically different from developed ones in terms of fiscal policy. We present a theory featuring a fiscal reaction function to the output gap and a measure of debt sustainability. The fiscal impulse response to a permanent (temporary) shock to GDP is positive (negative) as the effect on debt sustainability (current output gap) dominates. The results are mostly sensitive to the relative weight of debt sustainability in the fiscal reaction function as well as to the extent of real rigidities in the economy.--Abstract.
Other form:	Print Version: Barhoumi, Karim. Stochastic Trends, Debt Sustainability and Fiscal Policy. Washington, D.C. : International Monetary Fund, 2016. 9781513574677
Standard no.:	10.5089/9781513574677.001

Description
Summary:	We study empirically the reaction of fiscal policy to changes in the permanent and transitory components of GDP in a panel of countries. We find evidence that government spending tends to be counter-cyclical conditional on temporary shocks and pro-cyclical conditional on permanent shocks. We also find no evidence that developing countries are systematically different from developed ones in terms of fiscal policy. We present a theory featuring a fiscal reaction function to the output gap and a measure of debt sustainability. The fiscal impulse response to a permanent (temporary) shock to GDP is positive (negative) as the effect on debt sustainability (current output gap) dominates. The results are mostly sensitive to the relative weight of debt sustainability in the fiscal reaction function as well as to the extent of real rigidities in the economy.
Item Description:	"Institute for Capacity Development and African Department." "March 2016."
Physical Description:	1 online resource (45 pages) : illustrations.
Bibliography:	Includes bibliographical references (pages 28-30).
ISBN:	1513574671 9781513574677 1513575716 9781513575711 1513577123 9781513577128
ISSN:	1018-5941