Fiscal Stabilization Policy and Fiscal Institutions

Posted: 29 Feb 2008

See all articles by Campbell Leith

Campbell Leith

University of Glasgow - Department of Economics

Simon Wren-Lewis

University of Oxford - Economics Department

Abstract

In this paper we analyse counter-cyclical fiscal policy within the context of a microfounded analysis of business-cycle stabilization. We show that tax and spending instruments can have a useful counter-cyclical role, even after allowing for the distortionary nature of the instruments and the need for debt sustainability. A critical barrier to the use of fiscal instruments may be political economy concerns, and we survey recent suggestions involving alternative fiscal policy institutions.

Suggested Citation

Leith, Campbell and Wren-Lewis, Simon J.Q., Fiscal Stabilization Policy and Fiscal Institutions. Oxford Review of Economic Policy, Vol. 21, Issue 4, pp. 584-597, 2005, Available at SSRN: https://ssrn.com/abstract=906419

Campbell Leith (Contact Author)

University of Glasgow - Department of Economics ( email )

Adam Smith Building
Glasgow, Scotland G12 8RT
United Kingdom
++44 141 330 3702 (Phone)
++44 141 330 4940 (Fax)

Simon J.Q. Wren-Lewis

University of Oxford - Economics Department ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
515
PlumX Metrics