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Please use this identifier to cite or link to this item: http://hdl.handle.net/2262/64129

Title: On the cyclicality of Irish fiscal policy
Author: Lane, Philip R.
Keywords: Cyclicality
Fiscal policy
Ireland
Taxation
Issue Date: 1998
Publisher: Economic & Social Research Institute
Citation: Lane, Philip R. 'On the cyclicality of Irish fiscal policy'. - Economic & Social Review, Vol. 29, No. 1, January, 1998, pp. 1-16, Dublin: Economic & Social Research Institute
Abstract: In this paper, we tackle the important issue of cyclicality in the behaviour of Irish fiscal policy. We first review arguments in favour of the optimality of countercyclical fiscal policy. Next we outline a political economy model that explains procyclical fiscal policy as the rational, albeit suboptimal, outcome of an allocation game among competing fiscal groups. In our empirical work, we find the evidence generally rejects countercyclicality in Irish fiscal policy. We conclude by briefly discussing some institutional reforms that may improve the operation of fiscal policy over the economic cycle.
URI: http://hdl.handle.net/2262/64129
ISSN: 00129984
Appears in Collections:Economic and Social Review Archive: Complete Collection 1969-
The Economic and Social Review, Vol. 29, No. 1, January, 1998

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