Fiscal policy in developing countries: Do governments wish to have procyclical fiscal reactions?

GBATO, ANDRE (2017): Fiscal policy in developing countries: Do governments wish to have procyclical fiscal reactions?

Abstract

This study aimed to analyze the intentionally fiscal position of the governments of developing countries. Our results suggest that a significant proportion of developing countries adopts counter-cyclical positions. However, forecasting errors weak their positions. Results lead to conclude that if developing countries want to increase the effectiveness of their fiscal policies, they must build the skills of their forecast offices, and enhance the political and institutional framework governing the budget process.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fiscal policy; Real Time Data; Developing countries; Generalized moment method, Revision errors
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General; H - Public Economics > H6 - National Budget, Deficit, and Debt > H60 - General

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