Toglhofer, 2005), which set a threshold for the cash deficit of the federal government at a
level of 2.5% of GDP.
In a next step we ask whether cyclically adjusted spending and revenues (as a share of
nominal potential GDP) react in a specific pro- or counter-cyclical manner. Our
estimation results indicate a relatively strong pro-cyclical discretionary response of the
cyclically adjusted revenues to the cycle (see Figure 4.5 and 4.6).
Figure 4.3 Results for the Primary Balance
^^^core balance: nu ----actual balance core balance ±1.96*std
—— reaction to cycle:gamma----EC automatic stabilizer: alpha --------reaction to cycle ±196*std -------
I core balance: nu — — — — EC cyclically adj.balance (based on potential GDP) ∣
Figure 4.4 Decomposition of the Primary Balance
core discretionary policy: eta -----core dscretionary policy ±1.96*std
Core component (nu)
UC model
Cyclical component due to automatic stabilizer (alpha)
EC services
:ʃʃʃfiʧrkʃrf^^.....bo[
-1
-2
-3 -
-4
Cyclical component due to discretionary policy (gamma)
110
More intriguing information
1. The name is absent2. An institutional analysis of sasi laut in Maluku, Indonesia
3. On the estimation of hospital cost: the approach
4. Importing Feminist Criticism
5. Disturbing the fiscal theory of the price level: Can it fit the eu-15?
6. HACCP AND MEAT AND POULTRY INSPECTION
7. The name is absent
8. Nach der Einführung von Arbeitslosengeld II: deutlich mehr Verlierer als Gewinner unter den Hilfeempfängern
9. AN EXPLORATION OF THE NEED FOR AND COST OF SELECTED TRADE FACILITATION MEASURES IN ASIA AND THE PACIFIC IN THE CONTEXT OF THE WTO NEGOTIATIONS
10. Influence of Mucilage Viscosity On The Globule Structure And Stability Of Certain Starch Emulsions