Imperial College London
Alternate

Alexander Michaelides

Business School

Professor of Finance
 
 
 
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Contact

 

a.michaelides Website CV

 
 
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Location

 

1.06B53 Prince's GateSouth Kensington Campus

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Summary

 

Publications

Citation

BibTex format

@unpublished{Coutinho:2021:10.2139/ssrn.2321111,
author = {Coutinho, L and Georgiou, D and Heracleous, M and Michaelides, A and Tsani, S},
doi = {10.2139/ssrn.2321111},
publisher = {Elsevier},
title = {Limiting Fiscal Procyclicality: Evidence from Resource-Dependent Countries},
url = {http://dx.doi.org/10.2139/ssrn.2321111},
year = {2021}
}
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RIS format (EndNote, RefMan)

TY  - UNPB
AB  - We provide evidence that fiscal policy in resource-dependent countries is procyclical. The empirical analysis reveals that on average real government consumption in these countries tends to significantly rise (fall) in good (bad) times. To control for endogeneity we use an instrumental variable for GDP growth that arises naturally, namely the growth in commodity prices of the main natural resource export. We also find that fiscal policy procyclicality is lower in more democratic regimes, and in countries with stronger checks and balances on the executive. Operating a sovereign wealth fund can help limit fiscal policy procyclicality in some instances, while we find no such evidence for fiscal rules.
AU  - Coutinho,L
AU  - Georgiou,D
AU  - Heracleous,M
AU  - Michaelides,A
AU  - Tsani,S
DO  - 10.2139/ssrn.2321111
PB  - Elsevier
PY  - 2021///
TI  - Limiting Fiscal Procyclicality: Evidence from Resource-Dependent Countries
UR  - http://dx.doi.org/10.2139/ssrn.2321111
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2321111
UR  - http://hdl.handle.net/10044/1/92691
ER  -
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