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- W1568061669 abstract "Observed budget balances are an imperfect indicator of the fiscal policy stance, because fluctuations in economic ac tivity induce automatic changes in the balance, hence the use of cyclically-adjusted balances (CAB). However, this paper shows that CABs (as measured through one of the two methods currently used by the Commission) tend to be systematically overestimated during downturns and underestimated during expansions. The dominant source of this distortion arises from the filtering of revenues deemed to be cyclical, possibly signalling a problem with the compu tation of elasticities. The effect of the items which are assumed not to move with the cycle is non significant, but this" @default.
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- W1568061669 date "2003-01-01" @default.
- W1568061669 modified "2023-10-18" @default.
- W1568061669 title "How cyclical do cyclically-adjusted balances remain?: An EU study" @default.
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