
Contents
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9.1 Introduction 9.1 Introduction
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9.2 Public Wage Bills and Public Deficits 9.2 Public Wage Bills and Public Deficits
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9.2.1 Data 9.2.1 Data
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Public Wage Bills Public Wage Bills
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Public Deficit Public Deficit
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9.2.2 Cross-Country Correlations between Public Wage Bills and Public Deficits 9.2.2 Cross-Country Correlations between Public Wage Bills and Public Deficits
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9.2.3 Within-Country Correlations between Public Wage Bills and Public Deficits 9.2.3 Within-Country Correlations between Public Wage Bills and Public Deficits
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9.3 Episodes of Fiscal Drift and Fiscal Tightening 9.3 Episodes of Fiscal Drift and Fiscal Tightening
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9.3.1 Definition of Fiscal Drift and Fiscal Tightening Episodes 9.3.1 Definition of Fiscal Drift and Fiscal Tightening Episodes
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Fiscal Tightening Episodes Fiscal Tightening Episodes
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9.3.2 Description of Fiscal Drift Episodes 9.3.2 Description of Fiscal Drift Episodes
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9.3.3 Description of Fiscal Tightening Episodes 9.3.3 Description of Fiscal Tightening Episodes
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9.4 Determinants of Fiscal Drift and Fiscal Tightening Episodes 9.4 Determinants of Fiscal Drift and Fiscal Tightening Episodes
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9.4.1 Cycles and Institutions 9.4.1 Cycles and Institutions
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9.4.2 Econometric Method 9.4.2 Econometric Method
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9.4.3 Empirical Results 9.4.3 Empirical Results
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The Impact of Output Gap and Elections The Impact of Output Gap and Elections
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The Role of Institutions The Role of Institutions
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Robustness Robustness
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9.5 Conclusion 9.5 Conclusion
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References References
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Comment Comment
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Cite
Abstract
This chapter examines the adjustment of public wage bills and public deficits over business and political cycles, and is organized as follows. Section 9.2 presents the relation between public deficits and public wage bills in Organization for Economic Cooperation and Development countries over the last fifteen years, while Section 9.3 describes fiscal drift and fiscal tightening episodes. Section 9.4 analyzes the relations between the occurrence of fiscal drift and fiscal tightening episodes and the economic cycles, the election years, the transparency of governments, the freedom of the press, the union coverage, the political regime, and the electoral rules. A commentary is also included at the end of the chapter.
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