The determinants of the volatility of fiscal policy discretion

Detalhes bibliográficos
Autor(a) principal: Agnello, Luca
Data de Publicação: 2014
Outros Autores: Sousa, Ricardo M.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/27350
Resumo: We investigate the determinants of the volatility of fiscal policy discretion. Using a linear dynamic panel dataset model for 104 countries from 1980 to 2006 and a system-GMM estimator,we find that more government instability, less democracy and presidentialist systems increase the volatility of the discretionary component of fiscal policy. Additionally, we show that countries with a larger size, a smaller degree of financial openness, and a stable exchange rate system are more insured against the uncertainty about the conduct of fiscal policy. Our results are robust to various regional dummy variables, diferent sub-sets of countries and the presence of high inflation and crisis episodes.
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spelling The determinants of the volatility of fiscal policy discretionFiscal policy discretionVolatilityPolitical instabilityInstitutional frameworkMacroeconomyE63E31Ciências Sociais::Economia e GestãoSocial SciencesE63E31We investigate the determinants of the volatility of fiscal policy discretion. Using a linear dynamic panel dataset model for 104 countries from 1980 to 2006 and a system-GMM estimator,we find that more government instability, less democracy and presidentialist systems increase the volatility of the discretionary component of fiscal policy. Additionally, we show that countries with a larger size, a smaller degree of financial openness, and a stable exchange rate system are more insured against the uncertainty about the conduct of fiscal policy. Our results are robust to various regional dummy variables, diferent sub-sets of countries and the presence of high inflation and crisis episodes.The authors would like to thank the following for helpful comments: the Editor, two anonymous referees and participants at the 2009 Annual Meeting of the European Economic Association and the Econometric Society, the Economic Policies Research Unit (NIPE) seminar organised by the University of Minho, the First International Symposium in Computational Economics and Finance (ISCEF 2010), the 2010 Annual Meeting of the European Public Choice Society, the workshop on ‘International Political Economy and Cross-Border Effects’ organised by Queen Mary University of London and the UECE Conference on Economic and Financial Adjustments in Europe.WileyUniversidade do MinhoAgnello, LucaSousa, Ricardo M.20142014-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/27350engAgnello, L. and Sousa, R.M. (2014), The Determinants of the Volatility of Fiscal Policy Discretion. Fiscal Studies, 35: 91-115. https://doi.org/10.1111/j.1475-5890.2014.12024.x1475-589010.1111/j.1475-5890.2014.12024.xhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2014.12024.x/pdfinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:18:58Zoai:repositorium.sdum.uminho.pt:1822/27350Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:11:49.731529Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The determinants of the volatility of fiscal policy discretion
title The determinants of the volatility of fiscal policy discretion
spellingShingle The determinants of the volatility of fiscal policy discretion
Agnello, Luca
Fiscal policy discretion
Volatility
Political instability
Institutional framework
Macroeconomy
E63
E31
Ciências Sociais::Economia e Gestão
Social Sciences
E63
E31
title_short The determinants of the volatility of fiscal policy discretion
title_full The determinants of the volatility of fiscal policy discretion
title_fullStr The determinants of the volatility of fiscal policy discretion
title_full_unstemmed The determinants of the volatility of fiscal policy discretion
title_sort The determinants of the volatility of fiscal policy discretion
author Agnello, Luca
author_facet Agnello, Luca
Sousa, Ricardo M.
author_role author
author2 Sousa, Ricardo M.
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Agnello, Luca
Sousa, Ricardo M.
dc.subject.por.fl_str_mv Fiscal policy discretion
Volatility
Political instability
Institutional framework
Macroeconomy
E63
E31
Ciências Sociais::Economia e Gestão
Social Sciences
E63
E31
topic Fiscal policy discretion
Volatility
Political instability
Institutional framework
Macroeconomy
E63
E31
Ciências Sociais::Economia e Gestão
Social Sciences
E63
E31
description We investigate the determinants of the volatility of fiscal policy discretion. Using a linear dynamic panel dataset model for 104 countries from 1980 to 2006 and a system-GMM estimator,we find that more government instability, less democracy and presidentialist systems increase the volatility of the discretionary component of fiscal policy. Additionally, we show that countries with a larger size, a smaller degree of financial openness, and a stable exchange rate system are more insured against the uncertainty about the conduct of fiscal policy. Our results are robust to various regional dummy variables, diferent sub-sets of countries and the presence of high inflation and crisis episodes.
publishDate 2014
dc.date.none.fl_str_mv 2014
2014-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/27350
url http://hdl.handle.net/1822/27350
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Agnello, L. and Sousa, R.M. (2014), The Determinants of the Volatility of Fiscal Policy Discretion. Fiscal Studies, 35: 91-115. https://doi.org/10.1111/j.1475-5890.2014.12024.x
1475-5890
10.1111/j.1475-5890.2014.12024.x
http://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2014.12024.x/pdf
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Wiley
publisher.none.fl_str_mv Wiley
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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