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Fiscal Policy and Economic Activity in South Asia (Английский)

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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