Governments under influence: Country interactions in discretionary fiscal policy
1
EQUIPPE -
Economie Quantitative, Intégration, Politiques Publiques et Econométrie
2 OFCE - Observatoire français des conjonctures économiques (Sciences Po)
3 ESCP-EAP - ESCP-EAP
4 EDEHN - Equipe d'Economie Le Havre Normandie
5 SKEMA Business School
6 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
2 OFCE - Observatoire français des conjonctures économiques (Sciences Po)
3 ESCP-EAP - ESCP-EAP
4 EDEHN - Equipe d'Economie Le Havre Normandie
5 SKEMA Business School
6 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
Aurélie Cassette
- Fonction : Auteur
- PersonId : 20107
- IdHAL : aurelie-cassette
- ORCID : 0000-0003-3609-6764
- IdRef : 122691881
Jérôme Creel
- Fonction : Auteur
- PersonId : 962223
- ORCID : 0000-0001-6527-0632
- IdRef : 079080839
Étienne Farvaque
- Fonction : Auteur
- PersonId : 20104
- IdHAL : etienne-farvaque
- ORCID : 0000-0002-9180-4594
- IdRef : 061113581
Sonia Paty
- Fonction : Auteur
- PersonId : 171982
- IdHAL : sonia-paty
- ORCID : 0000-0001-8061-7075
- IdRef : 098214705
Résumé
We investigate the interactions between countries, and their effect on the discretionary (i.e. the cyclically-adjusted and interest-adjusted) components of national fiscal policies, observing and investigating the parts of public spending and tax receipts over which governments retain full discretion. Our sample includes 18 OECD countries for the period 1974-2008. First, we construct a measure of a discretionary fiscal policy from the residual component in a VAR model. We then compute this measure for the full sample. Using these data, we next run estimations of the discretionary fiscal policy interactions among the countries in the sample. Our results show that public decisions are affected by interactions between neighbor countries, neighborhood being defined by economic leadership as well as geography. We found evidence of opportunistic behavior by OECD country governments in relation to discretionary public spending. Finally, our estimation results reveal the crucial leadership role played by the USA in relation to discretionary fiscal policy decisions in Europe.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Governments under influence: Country interactions in discretionary fiscal policy
|
Résumé |
en
We investigate the interactions between countries, and their effect on the discretionary (i.e. the cyclically-adjusted and interest-adjusted) components of national fiscal policies, observing and investigating the parts of public spending and tax receipts over which governments retain full discretion. Our sample includes 18 OECD countries for the period 1974-2008. First, we construct a measure of a discretionary fiscal policy from the residual component in a VAR model. We then compute this measure for the full sample. Using these data, we next run estimations of the discretionary fiscal policy interactions among the countries in the sample. Our results show that public decisions are affected by interactions between neighbor countries, neighborhood being defined by economic leadership as well as geography. We found evidence of opportunistic behavior by OECD country governments in relation to discretionary public spending. Finally, our estimation results reveal the crucial leadership role played by the USA in relation to discretionary fiscal policy decisions in Europe.
|
Auteur(s) |
Aurélie Cassette
1
, Jérôme Creel
2, 3
, Étienne Farvaque
4, 5
, Sonia Paty
6
1
EQUIPPE -
Economie Quantitative, Intégration, Politiques Publiques et Econométrie
( 39818 )
- Lille 1 : Université des Sciences et Technologies de Lille Cité Scientifique, Faculté d'Economie et de Sciences Sociales, Bâtiment SH2 - 59655 Villeneuve d'Ascq Cedex Lille 2 : Faculté des Sciences Juridiques, Politiques et Sociales 1, place Déliot - BP 629 - 59024 Lille Cedex Université Charles-de-Gaulle - Lille 3 Domaine universitaire du Pont de Bois Maison de la Recherche rue du Barreau - BP 60149 - 59653 Villeneuve d'Ascq Cedex
- France
2
OFCE -
Observatoire français des conjonctures économiques (Sciences Po)
( 250936 )
- 10 place de Catalogne - 75014 Paris
- France
3
ESCP-EAP -
ESCP-EAP
( 59542 )
- 79, avenue de la République, 75011, Paris
- France
4
EDEHN -
Equipe d'Economie Le Havre Normandie
( 207009 )
- 25 rue Philippe Lebon
BP1123
76063 Le Havre Cedex
- France
5
SKEMA Business School
( 344663 )
- France
6
GATE Lyon Saint-Étienne -
Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
( 102550 )
- 93, chemin des Mouilles 69130 Écully
6, rue Basse des Rives 42023 Saint-Étienne cedex 02
- France
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Audience |
Internationale
|
Date de publication |
2013
|
Volume |
30
|
Page/Identifiant |
pp. 79-89
|
Nom de la revue |
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Mots-clés |
it
Fiscal policy, Discretion, Interactions, VAR, Spatial econometrics
|
DOI | 10.1016/j.econmod.2012.08.032 |
Loading...