Fiscal Regimes in the EU
ISEG Economics Working Paper No. 10/2013/DE/UECE
37 Pages Posted: 28 Apr 2013
There are 2 versions of this paper
Fiscal Regimes in the EU
Fiscal Regimes in the EU
Date Written: April 28, 2013
Abstract
We assess the existence of fiscal regime shifts in the U.K., Germany, and Italy, using Markov switching fiscal rules. On the basis of a newly built quarterly data set, our results show the existence of fiscal regimes shifts, sometimes coupled with regime switches also regarding monetary developments. While in the UK “active” and “passive” (Leeper, 1991) fiscal regimes are somewhat clearer cut, in Germany fiscal regimes have been overall less active, supporting more fiscal sustainability. For Italy, a more passive fiscal behaviour is uncovered in the run-up to EMU.
Keywords: Fiscal regimes, Markov-switiching, EU
JEL Classification: C22, E62, H62
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By António Afonso and Priscilla Toffano
-
By António Afonso and Priscilla Toffano
-
What Do We Really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic
By Christophe Rault and Antonio Afonso
-
What Do We Really Know About Fiscal Sustainability in the EU? A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
What Do We Really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
Fiscal Sustainability in the EU: A Panel Data Diagnostic
By António Afonso and Christophe Rault
-
Fiscal Policy Responsiveness, Persistence and Discretion
By António Afonso, Luca Agnello, ...
-
Perceptions and Misperceptions of Fiscal Inflation
By Todd B. Walker and Eric M. Leeper