Recent research has demonstrated that while government expenditures are countercyclical in most industrialized countries, they tend to be procyclical in developing countries. We develop a dynamic political-economy model to explain this phenomenon. In the model, public expenditures provide insurance to uninsured households, and optimal fiscal policy is countercyclical. The introduction of a political friction, in which successive governments disagree on the desired distribution of public spending, can lead to procyclical fiscal policies. Numerical simulations of the model allow us to compare quantitatively the relative role of common explanations for fiscal procyclicality. We conclude that political distortions in the fiscal process can expl...
This paper draws on the literature that explains why governments spend procyclically, to predict the...
Several empirical studies have found that government expenditures are procyclical in developing coun...
In this paper, we analyse the role of political and institutional variables on the cyclical patterns...
Recent research has demonstrated that while government expenditures are countercyclical in most indu...
Recent research has demonstrated that while government expenditures are countercyclical in most indu...
Several empirical studies have found that government expenditures are procycli-cal in developing cou...
Fiscal policy is procyclical in many developing countries. We explain this policy failure with a pol...
Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes ...
I develop a novel link between frictions in international financial markets and fiscal procyclicalit...
Whereas in the G-7 countries government consumption is essen-tially acyclical, in developing countri...
Many countries, especially developing ones, follow procyclical fiscal policies, namely spending goes...
International empirical evidence shows that fiscal policy in developing countries is largely procycl...
Abstract I develop a novel link between frictions in international financial markets and fiscal proc...
In this paper we examine factors that make some governments revert to procyclical fiscal policies de...
Procyclical government spending occurs when government expenditures increase at a faster rate than i...
This paper draws on the literature that explains why governments spend procyclically, to predict the...
Several empirical studies have found that government expenditures are procyclical in developing coun...
In this paper, we analyse the role of political and institutional variables on the cyclical patterns...
Recent research has demonstrated that while government expenditures are countercyclical in most indu...
Recent research has demonstrated that while government expenditures are countercyclical in most indu...
Several empirical studies have found that government expenditures are procycli-cal in developing cou...
Fiscal policy is procyclical in many developing countries. We explain this policy failure with a pol...
Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes ...
I develop a novel link between frictions in international financial markets and fiscal procyclicalit...
Whereas in the G-7 countries government consumption is essen-tially acyclical, in developing countri...
Many countries, especially developing ones, follow procyclical fiscal policies, namely spending goes...
International empirical evidence shows that fiscal policy in developing countries is largely procycl...
Abstract I develop a novel link between frictions in international financial markets and fiscal proc...
In this paper we examine factors that make some governments revert to procyclical fiscal policies de...
Procyclical government spending occurs when government expenditures increase at a faster rate than i...
This paper draws on the literature that explains why governments spend procyclically, to predict the...
Several empirical studies have found that government expenditures are procyclical in developing coun...
In this paper, we analyse the role of political and institutional variables on the cyclical patterns...