Author(s):
Afonso, António 
; Sousa, Ricardo M.
Date: 2011
Persistent ID: http://hdl.handle.net/1822/11968
Origin: RepositóriUM - Universidade do Minho
Subject(s): Fiscal deterioration; Portugal
Document details
Assessing long-term fiscal developments : evidence from Portugal
Description
We use a 3SLS method and a system of equations to recursively estimate two components of fiscal policy – responsiveness and persistence – and to infer about the sources of fiscal deterioration (improvement). Using quarterly data, the results suggest that: (i) government spending exhibits higher persistence than government revenue; and (ii) government revenue is more responsive to the business cycle than government spending, pointing to fiscal deterioration issues.
We use a 3SLS method and a system of equations to recursively estimate two components of fiscal policy – responsiveness and persistence – and to infer about the sources of fiscal deterioration (improvement). Using quarterly data, the results suggest that: (i) government spending exhibits higher persistence than government revenue; and (ii) government revenue is more responsive to the business cycle than government spending, pointing to fiscal deterioration issues.
Document Type
Article
Language English
Language English
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