Stylized Facts of Government Finance in the G-7

Author/Editor:

Riccardo Fiorito

Publication Date:

October 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 1997/142

Subject:

Business cycles Consumption taxes Economic growth Expenditure Government consumption Income and capital gains taxes National accounts Taxes

English

Publication Date:

October 1, 1997

ISBN/ISSN:

9781451927573/1018-5941

Stock No:

WPIEA1421997

Pages:

54

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