Premium
International Differences in Fiscal Outcomes during the Global Crisis
Author(s) -
Bénétrix Agustín S.,
Lane Philip R.
Publication year - 2015
Publication title -
fiscal studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.63
H-Index - 40
eISSN - 1475-5890
pISSN - 0143-5671
DOI - 10.1111/j.1475-5890.2015.12043.x
Subject(s) - economics , unemployment , fiscal policy , fiscal union , monetary economics , dispersion (optics) , macroeconomics , physics , optics
We examine the cross‐country dispersion in fiscal outcomes during 2008–09. Controlling for output, we find that the declines in the overall and structural fiscal balances were larger for those countries experiencing larger increases in unemployment and where credit growth during the pre‐crisis period was more rapid. However, controlling for output and unemployment, there is no systematic covariation between fiscal outcomes and a wider range of initial conditions and country characteristics that have been cited as possible drivers of fiscal outcomes during this episode.