Zawojska, Aldona; ORCID: 0000-0003-3668-0127
Polityka fiskalna jako stabilizator koniunktury gospodarczej w teorii realnego cyklu koniunkturalnego oraz praktyce krajów OECD w latach 1970–2005
Fiscal policy as a stabilizer of business cycle fluctuations: Real Business Cycle model and OECD empirical evidence over 1970–2005
Zeszyty Naukowe SGGW - Ekonomika i Organizacja Gospodarki Żywnościowej, 2007, vol., nr 63, s. 5-22
Abstract
This paper deals with the interaction between fiscal policy and the business cycle. It mainly focuses on the interaction between this policy and output fluctuations observed across OECD countries over the past thirty five years. The Hodrick-Prescott filter was employed to fi t a long-term trend in GDP to the raw data, and to derive the short-term cycles of each series. We achieved the following conclusion: the size of the government as measured by expenditures and taxes as a percentage of GDP is clearly inversely related to the volatility of GDP. Our results are not consistent with the RBC theory