The Effect of Fiscal Policy Asymmetries on Business Cycle Correlation in the EU

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43922091" target="_blank" >RIV/62156489:43110/22:43922091 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.47743/saeb-2022-0022" target="_blank" >https://doi.org/10.47743/saeb-2022-0022</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.47743/saeb-2022-0022" target="_blank" >10.47743/saeb-2022-0022</a>

Result language
angličtina
Original language name
The Effect of Fiscal Policy Asymmetries on Business Cycle Correlation in the EU
Original language description
This paper reviews the role of bilateral fiscal differences, fiscal indiscipline and their joint effects in particular in determining business cycle synchronicity in the European Union (EU). Panel data comprising 28 EU members from 1999-2019 are used in the analysis. The two-step Instrumental Variable-Generalized Method of Moments (IV-GMM) is employed to estimate the effects of examined fiscal measures on business cycle correlations. The study finds that fiscal indiscipline doubles the negative effect of increasing fiscal differences on business cycle correlation compared to fiscally disciplined country-pairs. The findings suggest reopening the debate on fiscal policy coordination across Europe.
Czech name
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Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory

Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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