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Political cycles and cyclical policies
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.ORCID iD: 0000-0001-8826-0410
1996 (English)In: Scandinavian Journal of Economics, ISSN 0347-0520, E-ISSN 1467-9442, Vol. 98, no 2, 203-218 p.Article in journal (Refereed) Published
Abstract [en]

We test how government revenue and expenditure depend on ideology, elections and economic activity. We show how fiscal forecasts can be used to identify the determinants of government revenue and expenditure. The approach is illustrated using a unique, unpublished Swedish data set of fiscal forecasts and forecasts of economic activity. We find partisan effects, but no election effects. Revenue and expenditure, but also the fiscal surplus, are lower with right-wing governments. Fiscal policy has been countercyclical. Revenue varies positively with nominal earnings; expenditure varies negatively with real GDP.

Place, publisher, year, edition, pages
1996. Vol. 98, no 2, 203-218 p.
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URN: urn:nbn:se:uu:diva-29034DOI: 10.2307/3440854OAI: oai:DiVA.org:uu-29034DiVA: diva2:56930
Available from: 2008-10-17 Created: 2008-10-17 Last updated: 2013-07-09

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Publisher's full texthttp://econpapers.repec.org/article/blascandj/v_3A98_3Ay_3A1996_3Ai_3A2_3Ap_3A203-18.htm

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Ohlsson, Henry
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