Structural Budget Balance and Fiscal Policy: the Limits of the European Approach

Stefano FANTACONE; Petya G. GARALOVA; Carlo MİLANİ

Makale detayları

Structural Budget Balance and Fiscal Policy: the Limits of the European Approach

Yazarlar:

Stefano FANTACONE | Petya G. GARALOVA | Carlo MİLANİ

Yayıncı:

Yildiz Technical University

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Yildiz Social Science Review 2015 Vol.1 Issue 2, pp.19-34

Belge Tipi:

Makale

Yayın Tarihi:

6/2016

Belge Dili:

Türkçe

Document ID (Org No.):

2000701353

Sıklık:

İki Yıllık

eISSN:

2687-6256

pISSN:

2149-4363

Özet:

 


Under the Fiscal Compact’s rules, the structural balance has become a crucial variable in the EU budgetary framework. This should facilitate the operativeness of the automatic stabilizers and avoid pro-cyclical fiscal policies . However, in the past years peripheralmember countries have witnessed a widespread budget restriction in front of a deep downturn of the economic cycle. We show that this occurred due to the distorted information provided by the model used by the European Commission to calculate the structural budget balance. Starting from the direct relationship between this latter and the NAWRU, we shed some light on the estimation methodology and its implication on member states’ fiscal policy. We focus our attention on the poor economic significance of the NAWRU and its large volatility over time. Finally, by the means of panel data estimations, we find out that the NAWRU is correlated with the economic cycle, which implies pro-cyclical effects on structural balances. Peripheral European countries seem to be more affected by these pro-cyclical effects than core countries.

.

Makale detayları

Structural Budget Balance and Fiscal Policy: the Limits of the European Approach

Yazarlar: Stefano FANTACONE | Petya G. GARALOVA | Carlo MİLANİ

Yayıncı: Yildiz Technical University

Ana Başlıklar: Sosyoloji & antropoloji

Dergi: Yildiz Social Science Review 2015 Vol.1 Issue 2, pp.19-34

Belge Tipi: Makale

Yayın Tarihi: 6/2016

Belge Dili: Türkçe

Document ID (Org No.): 2000701353

Sıklık: İki Yıllık

eISSN: 2687-6256

pISSN: 2149-4363

Sayı

Yazarlar:

Stefano FANTACONE | Petya G. GARALOVA | Carlo MİLANİ

Yayıncı:

Yildiz Technical University

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Yildiz Social Science Review 2015 Vol.1 Issue 2, pp.19-34

Belge Tipi:

Makale

Yayın Tarihi:

6/2016

Belge Dili:

Türkçe

Document ID (Org No.):

2000701353

Sıklık:

İki Yıllık

eISSN:

2687-6256

pISSN:

2149-4363