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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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Fiscal Planning and Implementation: Euro Area Analysis Based on Real Time Data, Research in Applied Economics 1 (2014). Paloviita, Maritta

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Paloviita, Maritta 
Number of authors
Status Published
Year of publication 2014 
Date 20.01.2014 
Name of article Fiscal Planning and Implementation: Euro Area Analysis Based on Real Time Data 
Name of journal Research in Applied Economics
Volume of issue
Number of issue
Pages 15-37 
Abstract The aim of this study is to explore discretionary fiscal policies in the euro area during the
time of monetary union (EMU). Ex ante budget plans and policy changes during budget
implementation are investigated using real time data from the OECD Economic Outlook
publications. The particular focus of the study is on fiscal adjustment to the recent financial crisis and the subsequent global recession. Estimated fiscal policy reaction functions indicate that in the EMU period ex ante fiscal plans have basically been long-term oriented and counter-cyclical in the euro area. In the course of the budgetary year, policies have typically been adjusted due to data revisions and new business cycle information. The crisis had a clear impact on discretionary policies. The periphery countries clearly adjusted their policies already in the budgetary planning stage, but other countries mainly reacted to the crisis during budget implementation. We provide evidence that short-term counter-cyclical fiscal policies may not have been consistent with sound and sustainable public finances.
Free text descriptor in English fiscal policy, real time data, planning stage, implementation stage, cyclical 
JEL-codes E62, E32 
ISSN / e-ISSN 1948-5433 
auki Internet addresses
Notes BoF DP 34/2012 

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