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Determining the cyclical budget balance

PostPosted: Mon Apr 10, 2017 11:58 am
by econ86
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Re: Determining the cyclical budget balance

PostPosted: Mon Apr 10, 2017 5:42 pm
by jpfeifer
There is no general way to answer this. There are different ways to conceptualize the concept of "cyclical budget balance". As Cwik writes
I define the structural government deficit as the deficit, which is present when there
is no adjustment of fiscal instruments to output and the tax base is at their equilibrium value.

If you want the same definition, use his concept. If you have something else in mind, use that other definition. You just have to be transparent and tell readers which concept you are using.