Single Equation Models; Single Variables: Models with Panel Data

Fiscal Policy in Real Time

JEL codes: 
C23, E30, E62, H30, H60
Version Date: 
May 2008

This paper argues that any assessment on the intentional stance of fiscal policy should be
based upon all the information available to policymakers at the time of fiscal planning. In
particular, real-time data on the discretionary fiscal policy "instrument", the structural
primary balance, should be used in the estimation of fiscal policy reaction functions. In

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