Why is fiscal policy often procyclical?

Why is fiscal policy often procyclical?
Alberto Alesina, Alberto Alesi ...
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Last edited by MARC Bot
December 13, 2020 | History

Why is fiscal policy often procyclical?

"Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for less-than-benevolent government to appropriate rents. Voters have incentives similar to the "starving the Leviathan" classic argument, and demand more public goods or fewer taxes to prevent governments from appropriating rents when the economy is doing well. We test this argument against more traditional explanations based purely on borrowing constraints, with a reasonable amount of success"--National Bureau of Economic Research web site.

Publish Date
Language
English

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Edition Availability
Cover of: Why is fiscal policy often procyclical?
Why is fiscal policy often procyclical?
2005, National Bureau of Economic Research
in English
Cover of: Why is fiscal policy often procyclical?
Why is fiscal policy often procyclical?
2005, National Bureau of Economic Research
Electronic resource in English

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Book Details


Edition Notes

Includes bibliographical references.
Title from PDF file as viewed on 9/21/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.

Published in
Cambridge, MA
Series
NBER working paper series ;, working paper 11600, Working paper series (National Bureau of Economic Research : Online) ;, working paper no. 11600.

Classifications

Library of Congress
HB1

The Physical Object

Format
Electronic resource

ID Numbers

Open Library
OL3478737M
LCCN
2005618923

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December 13, 2020 Edited by MARC Bot import existing book
February 5, 2010 Edited by WorkBot add more information to works
December 10, 2009 Created by WorkBot add works page