{
  "title": "Revisiting the Countercyclicality of Fiscal Policy",
  "publication": "IMF Working Papers, April 29, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2023/04/29/revisiting-the-countercyclicality-of-fiscal-policy-532952",
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  "summary": "This paper provides a novel dataset of time-varying measures on the degree of countercyclicality of fiscal policies for advanced and developing economies between 1980 and 2021.",
  "sections": [
    {
      "heading": "Overview and dataset",
      "content": "- Provides a novel dataset of time-varying measures on the degree of countercyclicality of fiscal policies for advanced and developing economies between 1980 and 2021.\n- Uses time-varying measures of fiscal stabilization and pays special attention to potential endogenity issues.\n- Allows analysis that accounts for both country-specific as well as global factors."
    },
    {
      "heading": "Research focus and methodology",
      "content": "- Examines key determinants of countercyclicality of fiscal policy with a focus on:\n  - severe crises,\n  - informality,\n  - financial development,\n  - governance.\n- Distinguishes discretionary and automatic components of fiscal policy.\n- Employs empirical specifications with endogeneity checks; results reported as robust to various specifications and endogeneity checks."
    },
    {
      "heading": "Main empirical findings",
      "content": "- Fiscal policy tends to be more counter-cyclical during severe crises than typical recessions, especially for advanced economies.\n- Fiscal counter-cyclicality has increased over time for many economies over the last two decades.\n- Discretionary and automatic countercyclicality:\n  - both strong in advanced economies,\n  - acyclical (at times procyclical) in low-income countries.\n- Fiscal countercyclicality operates primarily through the expenditure channel, particularly for social benefits.\n- Better financial development, larger government size and stronger institutional quality are associated with larger countercyclical effects of fiscal policy."
    },
    {
      "heading": "Key statistics and publication metadata",
      "content": "- Authors: João Tovar Jalles, Youssouf Kiendrebeogo, Waikei Raphael Lam, Roberto Piazza\n- Date: April 29, 2023\n- Pages: 31\n- Volume: 2023\n- Issue: 089\n- Series: Working Paper No. 2023/089\n- DOI: https://doi.org/10.5089/9798400240683.001\n- Stock No: WPIEA2023089\n- ISBN: 9798400240683\n- ISSN: 1018-5941\n\nIMF Working Paper — Revisiting the Countercyclicality of Fiscal Policy (April 29, 2023) by João Tovar Jalles, Youssouf Kiendrebeogo, Waikei Raphael Lam, and Roberto Piazza\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2023/04/29/revisiting-the-countercyclicality-of-fiscal-policy-532952"
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    "Authors: João Tovar Jalles, Youssouf Kiendrebeogo, Waikei R Lam, Roberto Piazza",
    "Published: April 29, 2023",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400240683.001",
    "Provides a novel dataset of time-varying measures on the degree of countercyclicality of fiscal policies for advanced and developing economies between 1980 and 2021.",
    "Uses time-varying measures of fiscal stabilization and pays special attention to potential endogenity issues.",
    "Allows analysis that accounts for both country-specific as well as global factors.",
    "Examines key determinants of countercyclicality of fiscal policy with a focus on:",
    "Distinguishes discretionary and automatic components of fiscal policy.",
    "Employs empirical specifications with endogeneity checks; results reported as robust to various specifications and endogeneity checks.",
    "Fiscal policy tends to be more counter-cyclical during severe crises than typical recessions, especially for advanced economies.",
    "Fiscal counter-cyclicality has increased over time for many economies over the last two decades.",
    "Discretionary and automatic countercyclicality:",
    "Fiscal countercyclicality operates primarily through the expenditure channel, particularly for social benefits.",
    "Better financial development, larger government size and stronger institutional quality are associated with larger countercyclical effects of fiscal policy.",
    "Authors: João Tovar Jalles, Youssouf Kiendrebeogo, Waikei Raphael Lam, Roberto Piazza",
    "Date: April 29, 2023",
    "Pages: 31",
    "Volume: 2023",
    "Issue: 089",
    "Series: Working Paper No. 2023/089",
    "DOI: https://doi.org/10.5089/9798400240683.001",
    "Stock No: WPIEA2023089",
    "ISBN: 9798400240683",
    "ISSN: 1018-5941",
    "**Working Paper**"
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