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Joao Tovar Jalles
''How Quickly is News Incorporated in Fiscal Forecasts?''
( 2015, Vol. 35 No.4 )
This paper tests for the existence of information rigidities in private sector budget-balance forecasts in a multi-country context for a sample of G7 countries between 1993 and 2012. We find evidence of information rigidities in fiscal forecast as private forecasters fail to adjust their budget balance forecasts quick enough in response not only to domestic news, but also to news from abroad.
Keywords: budget balance, forecast comparison, information rigidity, Panel VAR, impulse response functions
JEL: C5 - Econometric Modeling: General
E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
Manuscript Received : Jul 25 2015 Manuscript Accepted : Dec 18 2015

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