The Budget Balance in the Medium Term and the Hodrick-Prescott Filter
Bank of Italy – Indicators of Structural Budget Balances Conference, p. 353, 1998
16 Pages Posted: 18 Jul 2012
Date Written: November 28, 1998
The paper by Van den Dool proposes to accompany a cyclically-adjusted balance, computed using a standard “gap elasticity” approach, with a “structural balance”, calculated as a moving weighted average of the actual balance (using the Hodrick-Prescott filter). The structural balance, in this case, does not aim to adjust the balance only for the effects of economic fluctuations but for all other temporary factors.
Suggested Citation: Suggested Citation
van den Dool, Gerrit, The Budget Balance in the Medium Term and the Hodrick-Prescott Filter (November 28, 1998). Bank of Italy – Indicators of Structural Budget Balances Conference, p. 353, 1998, Available at SSRN: https://ssrn.com/abstract=2109674
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.