Fiscal Convergence, Business Cycle Volatility and Growth

Davide Furceri, Davide Furceri

Risultato della ricerca: Articlepeer review

8 Citazioni (Scopus)


This paper analyzes the effects of fiscal convergence on business cycle volatility and growth. Using a panel of 11 EMU and 21 OECD countries and 40 years of data, we find that countries with similar government budget positions tend to have smoother business cycles. That is, fiscal convergence (in the form of persistently similar ratios of government surplus/deficit to GDP) is systematically associated with smoother business cycles. We also find evidence that reduced business cycle volatility through higher fiscal convergence stimulates growth. Our empirical results are economically and statistically significant, and robust.
Lingua originaleEnglish
Numero di pagine16
RivistaReview of International Economics
Stato di pubblicazionePublished - 2009

All Science Journal Classification (ASJC) codes

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