Stylized Facts of Government Finance in the G-7

October 1, 1997

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Format: Chicago

Riccardo Fiorito. Stylized Facts of Government Finance in the G-7, (USA: International Monetary Fund, 1997) accessed September 19, 2024

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.

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

Keywords: Business cycle, Business cycles, Consumption share, Consumption taxes, Correlation coefficient, Europe, General government variable, Government balance, Government consumption, Government consumption, Government Finance, Government outlay, Income and capital gains taxes, Indirect tax, Interest expenditure in Japan, Negative correlation, North America, Public goods, Stylized Facts, WP

Publication Details

Pages:

54
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/142
Stock No:

WPIEA1421997
ISBN:

9781451927573
ISSN:

1018-5941

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