Download This PaperThe 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
Abstract
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
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