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Volume 54, July/August 2019, Number 4 · pp. 237-240


What Drives the Responsiveness of the Budget Balance to the Business Cycle in EU Countries?

Gilles Mourre, Aurélien Poissonnier

The European Commission methodology for computing the cyclically adjusted government budget balance provides a robust measurement of the fiscal position of the Member States. The fiscal semi-elasticities at the core of this method are structural parameters, mostly of fiscal nature, not linked to cyclical or other economic factors. Fiscal semi-elasticities also exhibit an emulation effect between neighbours and some groupings of countries.


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