Stylized Facts of Government Finance in the G-7

54 Pages Posted: 15 Feb 2006

See all articles by Riccardo Fiorito

Riccardo Fiorito

University of Siena - Department of Economics

Date Written: October 1997

Abstract

The stylized facts of government finance in the Group of Seven (G-7) industrial countries show that revenues lag real GDP procyclically, while government spending in most cases fails to lead the economy procyclically. This finding is not confined to transfers but also applies to the wage component of government consumption as well as, in most cases, to government fixed investment. Government deficits are always countercyclical but there is little evidence that stabilization is equally successful in stimulating the economy before shocks materialize.

Keywords: Stylized Facts, Business Cycle, Government Finance

JEL Classification: E3, E6, H3, H6

Suggested Citation

Fiorito, Riccardo, Stylized Facts of Government Finance in the G-7 (October 1997). IMF Working Paper No. 97/142, Available at SSRN: https://ssrn.com/abstract=882707

Riccardo Fiorito (Contact Author)

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy
+39 5 7723 2610 (Phone)
+39 5 7723 2661 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
88
Abstract Views
1,697
Rank
531,639
PlumX Metrics