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- W4313217356 abstract "Fiscal policy is an effective instrument in helping governments in developed countries overcome a recession with a high unemployment rate or a hot economy with a high inflation rate to keep the economy on a stable path. Does governance contribute significantly to keeping this goal in these countries? The study looks for an answer by empirically investigating the role of governance in the output gap - fiscal policy relationship for a group of 27 developed countries between 2002 and 2019. It employs the difference GMM Arellano-Bond estimators and the PMG estimator for estimation and robustness check. The results provide some interesting findings. Firstly, both public spending and government revenue are counter-cyclical, confirming the counter-cyclical fiscal policy in developed countries. Secondly, governance hinders the counter-cyclical fiscal policy. The findings imply some crucial policies for governments in developed countries in running the fiscal policy." @default.
- W4313217356 created "2023-01-06" @default.
- W4313217356 creator A5062145279 @default.
- W4313217356 date "2022-12-29" @default.
- W4313217356 modified "2023-09-30" @default.
- W4313217356 title "Counter-cyclical Fiscal Policy in Developed Countries: Does Governance Hinder?" @default.
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- W4313217356 doi "https://doi.org/10.18267/j.pep.814" @default.
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