Base article:

In this paper cyclicality in fiscal policy addresses and show that the level of cycliciy varies
across spending categories and OECD countries. In this paper study the cyclicality of fiscal
policy in a sample of OECD countries and several advantages OECD study and data is
available longer for the
Sadaf siddiue:
Fiscal policy in the OCED: measurement and cyclical adjustment:
In this paper addressed a new fiscal indicator decomposition based of the change in the
budget balance the effect of changes in fiscal policy and induced change or the effect of
changes in the economy and indicator adjustments are linked directly to the main tax bases in
this paper addressed the cyclical behaviour of fiscal policy over the business cycle.
The Keynesian view has been that fiscal policy should be counter cyclical, so that budget is
used actively to stabilise the economy. In the empirical literature on fiscal policy as well as in
the evaluation and policy formulation of fiscal policy concern the measurement of the actual
policy. The results suggest that OCED countries have pursued both pro and counter cyclical
fiscal policies have sometime changed over time and construct a panel of discretionary fiscal
policies for the OCED countries. More clearly suggested in this article a new fiscal indicator
and decomposes the change in the budget balanced. There already exist several other
indicators that can be used for this purpose and indicators more accurate than existing ones.
The main reason to accuracy is that our indicator attaches the cyclical adjustment directly to
the tax bases other indicators are based on adjustment relative to GDP or unemployment. In
such years an indicator based on GDP growth will be misleading by indicating that so their
fiscal policy less tight. Here indicator to measure the cyclicality of fiscal policy for eighteen
OCED countries and defined the countries on average are pursuing a procyclical fiscal policy
than other countries. In this article indicator is very useful also for other purposes.
And this indicator is helpful by providing a transparent summary the indicators measure. And
the indicators can also be used in research of economic on other fiscal policy problems as
research on the effect of changes in fiscal policy on the economy and decision making on
fiscal policy.

2)
This article main purpose to determine the cyclical behaviour of fiscal policy in EU member
using the historical tie series for all the European countries during the 1995. To 2011 period.
the cyclical behaviour of the fiscal policy of romaine in the context of the European
countries. The fiscal policy play a key role in the reduction of budget deficit. Stiglitz et.al
(2006) sustain the adoption of a countercyclical fiscal policy as in the recession periods
characterised by reduced fixed revenues and rising budget expenditures and corresponding
deeper budget the deficits the government should adopt programs to reduce the tax and
increase the expenditure. The case of most developing countries in the EU. The analysis
based on the going down in recession. The analysis based on the determination of the
correlation coefficients between the cyclical components of the real public expenditures and
the real GDP emphasis the fact that the fiscal policy differs from one country to another in
terms of the develop level. The results pointed out that the procyclical fiscal policies are a
feature of developing countries and the countercyclical and a cyclical fiscal policy are a
feature of developed countries. The first part of the paper deals with the determination of
correlation between the cyclical components of real public expenditure and of real GDP in
order to observe the fiscal policy behaviour promoted by each state. The economic crisis was
the answer of how painful the recession period could be on the background of previous
procyclical fiscal policies
Tayyiba ishaque:

Fiscal policy reaction to the cycle in the OCED

This paper addressed the fiscal policy reaction to the cycle in OCED countries. The results
analyse that while overall government balances were counter-cyclical in the past and more so
downturns in economic than in upswing and fiscal policy was neutral on average. And in this
paper analyse the behaviour of observed and planned cyclically unadjusted and adjusted
government and also investigates whether fiscal policy reactions are liner or whether and
depend on the size of the public debt and government balances in the cycle.
Moreover, concerning European countries, golineth and momiglian (2009) survey. And
Afonso and hauptmeier (2009) do not significant relation between the lagged cycle and
unadjusted primary government balance. Fiscal policy is neutral if measured against the
output gap and is midly counter-cyclical if measured against changes in GDP growth rates.
And these finding hide substantial country differences. While automatic stabilisers dominate
overall government balances is most OCED countries and we find the second finding that real
house and share price have a strong impact on cyclically unadjusted and adjusted balances
and the overall response of balances to the cycle asymmetric with a more counter-cyclical
response in downturns than in upswings but nit adjustment balances cyclically. Here using
the GDP growth yields conflicting results for the last upswing. Moreover, this paper finds
that there is a strong non-linear effect in the way fiscal policy reacts to the cycle. If balance is
in surplus fiscal policy is counter-cyclical.
And addresses result also suggest that fiscal plans are asymmetric. Real house price increase
are reflected in total and discretionary fiscal policies. And these results suggest that wage
government consumption and investment spending, so government subsidies tend to be
counter-cyclical. And on the revenue side taxes are found to react most strongly to GDP
growth. While good and services and social security contributions react less strongly.

2) The cyclical character of fiscal policy in transition countries.

This study investigated the cyclical character of fiscal policy in transition in Central Easter
and South Eastern European countries. according to traditional Keynesian theory government
can and should pursue counter cycle policy while old lowering revenue and increasing
consumption and public investment in the recessions. The government spending tax rate
would result in counter cyclical our budget balance.    
graven and Perotti 1997 suggest that pro fiscal policy is Latin America and related to market
failures as government borrowing is constraint in the recession. Talvi bad vegh 2005 argue
that pro-cyclical is an optimal response shocks to the tax base which is more volatile in
developing countries due to their more volatile output movement. the discretionary policy in
the euro area countries was pro-cyclical before 1992 but a cyclical afterwards.
The finding of procyclical discretionary policy in the euro area in empirical studies trend too
overlook the relatively large size of automatic stabilizers in these counties which can offset
discretionary measures in periods of large cyclical moments. In a wider study of fiscal policy
in OCED countries. The overall policy has become more countercyclical particularly in
downturns and that discretionary policy is countercyclical mostly in countries with low debts
and deficit and procyclical in others. Further the fiscal policy is countercyclical and less
inertial them in EU-15 group. The main drawback of these studies is that they do not allow
for a direct interpretation of results in terms of cyclicality they use GDP growth as indicator
of business cycle rather than output gap. While focusing on discretionary fiscal policy it
analyses that policy providing an indication of effects of automatic stabilizers. Automatic
stabilizers include components of fiscal policy that are incorporated in the legislation and act
without any short-term action by policy consists of measures undertaken by policy makers as
a reaction to various factors such as output movements debt movements or other factors.

Rozian:
3rd article:
Fiscal policy and adjustment in OCED countries.
In most of the countries policymakers are striving the improve the budget balance. We see the
relationship between fiscal stance loose or tight fiscal balance and composition of budget
based on OCED countries. We find that large fiscal expansions typically are biased towards
increase in expenditure while large fiscal adjustments on verge rely more on tax increases. A
fiscal adjustment cannot have long lasting effects unless it lackless two expenditures
government employment ad social programs often regarded as unfortunate by policy makers
and their advisors. The first oil shock in the mid-seventies many OCED countries started
accumulating large public debts from a policy perspective instead changes in the composition
of a budget are extremely important. When a policy maker must improve the budget balance,
he can raise taxed and cut expenditures.
We also know about the loose and tight fiscal policies. Loose policies are the result of sharp
increases in government expenditure particularly transfer programs, tight policies are carried
out through increases in taxes particularly direct tax on households rather then reduction in
expenditure. In comparing single party governments and coalition governments we come too
know that the latter are incapable of achieving a stable consolidation of budget. The results
by roubini and sachs 1989 and grilli Masciandaro and Tabellini 1991 on the effect of
coalition governments on budget balance. We also define fiscal impulse as the discretionary
change in budgetary position of government fiscal impulse is difference between some actual
measure of budgetary position of government and the level of same measure that would
prevail if the effect of cycle could be partial led out by reducing to some benchmark situation.
According to OCED the general government includes all departments offices, organizations
and other bodies which are agencies or instruments of central state or local public authorities.
We are trading off two opposite requirements on one hand we need to make sure that very
loose or very tight policies are really different from business as usual and they are unduly
influence by cyclical factors despite our correlation for unemployment on the other hand in
order to have enough power to have sufficient number of observations for each type of
policy. Our interpretation is that conflicts amongst coalition members and fragility of
coalition governments make it difficult to maintain a “ tough “ fiscal stance when politically
sensitive programs government employment and social security are involved.
The effect of volatility:
This article show the effect of trade volatility on growth of real gross domestic product per
capital. It concentrates some of the smaller countries in the world. The population size and
per capita income levels for example there are different quite widely with in the region. Some
of them are commodity exporters while other are service-oriented economies. Growth for
also been uneven in the region with commodity exporters experiencing the highest growth
rates over the last few years in comparison with service-oriented economies which have
suffered the most with the effect of global financial crisis.
The economic performance of the members of OECS has been particularly uneven due to
reasons that range from the need to reinvent themselves after the end of preferential trade
agreements with Europe to the frequency of natural hazards. More recently the region was
severely hit by the effect of global financial crisis of 2008-09 this is because of their close
ties with the economies of U.S, Canada and Europe which are the main source of tourist
arrivals. The OECS countries have also suffered with the volatility of economic growth.
Economic growth volatility in OECS has been higher than observed in other countries with
similar characteristic. The OECS countries have also followed a pro-cyclical fiscal policy.
Talvi and Vegh 2005 and Flzetzki and Vegh 2008 shown that pro-cyclical fiscal policy is a
common characteristic of developing world volatility is often associated with lower economic
growth. By reducing economic growth volatility effect future consumption. The effect of
government spending volatility and output volatility on economic growth. They find that
government spending volatility significantly increases output volatility and reduce growth.
The article show that real exchange rate volatility has a negative effect on economic growth
exchange rate depreciation has opposite effect however the presence of credit constraint
implies that the negative effects on output outweigh the positive effects. A key conclusion
from this article research is that counter-cyclical fiscal policy and stable and well-developed
financial markets and institutions will have particularly high payoffs in terms of reducing the
adverse growth effect of terms of trade volatility in OECS regions. Our results suggest, that
such measures aimed at increasing the depth, access and efficiency of financial markets and
institution would have a beneficial effect on economic growth.