Asymmetric government expenditure: a comparison of advanced and developing countries. Issue 2 (3rd April 2019)

• Record Type: Journal Article
• Authors: Çulha, Ali Aşkın
• Is Part Of: Journal of economic policy reform. Volume 22:Issue 2(2019)
• Page Start: 164
• Page End: 183
• Publication Date: 2019-04-03
• Subjects: government expenditure -- procyclicality -- countercyclicality -- asymmetry; E32 -- E62 -- H50; Economic policy -- Periodicals; Commercial policy -- Periodicals; Monetary policy -- Periodicals; International trade -- Periodicals; Developing countries -- Economic policy -- Periodicals; Former Soviet republics -- Economic policy -- Periodicals; Post-communism -- Periodicals; Policy sciences -- Periodicals; 338.9
• DOI: 10.1080/17487870.2017.1374863
• Languages: English
• ISSNs: 1748-7870

Abstract

Abstract : This paper studies the responsiveness of government expenditures to business cycles and introduces an index of asymmetric government expenditures using panel data for advanced and developing countries during the period 1981–2014. The empirical findings show that government expenditures tend to be procyclical in developing countries but acyclical in advanced economies. In addition, it is found that government expenditures respond in a countercyclical manner during bad times in advanced countries, but in a strongly procyclical manner during good times in developing countries. The index of asymmetric government expenditures for developing countries tends to be higher than that of the advanced countries.