02057cas a2200253 a 4500 AALejournalIMF014290 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475516111 1018-5941 BD-DhAAL BD-DhAAL Cevik, Serhan. Deep Roots of Fiscal Behavior / Serhan Cevik, Katerina Teksoz. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the determinants of fiscal policy behavior and its time-varying volatility, using panel data for a broad set of advanced and emerging market economies during the period 1990-2012. The empirical results show that discretionary fiscal policy is influenced by policy inertia, the level of public debt, and the output gap in both advanced and emerging market economies. In addition, the paper finds that macro-financial factors-such as real exchange rate, financial development, interest rates, asset prices, and natural resource rents-and demographic and institutional factors-such as the old-age dependency ratio, the quality of institutions, and policy anchors such as fiscal rules and IMF-supported stabilization programs-tend to have a significant effect on fiscal policy behavior. The results also indicate that higher government debt leads to more volatile fiscal behavior, while fiscal rules and higher institutional quality reduce the volatility of fiscal policy over time. Mode of access: Internet Teksoz, Katerina. IMF Working Papers; Working Paper ; No. 2014/045 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/045/001.2014.issue-045-en.xml IMF e-Library