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Political cycles and cyclical policies

Ohlsson, Henry, 1956- (author)
Uppsala universitet,Nationalekonomiska institutionen
Vredin, Anders (author)
 (creator_code:org_t)
JSTOR, 1996
1996
English.
In: Scandinavian Journal of Economics. - : JSTOR. - 0347-0520 .- 1467-9442. ; 98:2, s. 203-218
  • Journal article (peer-reviewed)
Abstract Subject headings
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  • We test how government revenue and expenditure depend on ideology, elections and economic activity. We show how fiscal forecasts can be used to identify the determinants of government revenue and expenditure. The approach is illustrated using a unique, unpublished Swedish data set of fiscal forecasts and forecasts of economic activity. We find partisan effects, but no election effects. Revenue and expenditure, but also the fiscal surplus, are lower with right-wing governments. Fiscal policy has been countercyclical. Revenue varies positively with nominal earnings; expenditure varies negatively with real GDP.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Nationalekonomi
Economics

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