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Fiscal Policy and Economic Activity in South Asia (English)

This paper analyzes whether fiscal policy in South Asia amplifies or smooths business cycle fluctuations. The paper estimates several econometric models to explore the cyclicality of government spending and tax buoyancy. The findings show that fiscal policy is procyclical in most countries. In South Asia, tax revenue increases less than one to one with gross domestic product, but public spending increases more than proportionally. While changes in...
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Citation

Beyer,Robert Carl Michael; Milivojevic,Lazar.

Fiscal Policy and Economic Activity in South Asia (English). Policy Research working paper|no. WPS 8792 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/711041553536608365

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