Working Papers, Konjunkturinstitutet - National Institute of Economic Research
Henrik Braconier and Tomas Forsfält
A New Method for Constructing a Cyclically Adjusted Budget Balance: the Case of Sweden
Abstract: In this paper, we discuss a new method for constructing a
cyclically adjusted budget balance. We use the method to evaluate the
budget balance for Sweden during the period 1991–2005. Traditionally,
methods for cyclical adjustment have focused on the output gap. In this
paper we also adjust for deviations of tax bases from their trend levels.
Furthermore, we adjust for effects of the unemployment gap on government
spending. For Sweden, we find that these additional adjustments have a
significant impact on the cyclically adjusted budget balance, especially
for the periods 1992–1995 and 2000–2001.
Keywords: Fiscal Policy; Cyclically Adjusted Budget Balance; (follow links to similar papers)
JEL-Codes: H30; H61; (follow links to similar papers)
19 pages, April 15, 2004
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Working-Paper-90-A-New-Me ... ce-the-Case-of-Sweden.pdf
Questions (including download problems) about the papers in this series should be directed to Sarah Hegardt Grant ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom