TY - BOOK ID - 84538716 TI - Boom-Bust Phases in Asset Prices and Fiscal Policy Behavior AU - Schuknecht, Ludger. AU - Jaeger, Albert. PY - 2004 SN - 1462301592 1452746249 1281155845 1451894414 9786613777201 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Assets (Accounting) KW - Fiscal policy. KW - Tax policy KW - Taxation KW - Economic policy KW - Finance, Public KW - Asset requirements KW - Prices KW - Econometric models. KW - Government policy KW - Macroeconomics KW - Public Finance KW - Production and Operations Management KW - Business Fluctuations KW - Cycles KW - Fiscal Policy KW - Comparative or Joint Analysis of Fiscal and Monetary Policy KW - Stabilization KW - Treasury Policy KW - Price Level KW - Inflation KW - Deflation KW - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) KW - Macroeconomics: Production KW - Economic growth KW - Asset prices KW - Fiscal stance KW - Business cycles KW - Fiscal policy KW - Output gap KW - Production KW - Economic theory KW - United Kingdom UR - https://www.unicat.be/uniCat?func=search&query=sysid:84538716 AB - Boom and bust phases in asset prices have become a pervasive feature of macroeconomic developments in many advanced economies. This paper studies fiscal policy during boom-bust phases in asset prices and draws several conclusions. First, expansions and contractions in economic activity during such boom-bust phases tend to be highly persistent, cyclical turning points are harder to forecast, and the margins of error for output gap estimates can be large. Second, conventional estimates of revenue elasticities seem not to allow an accurate assessment of the fiscal stance and of the strength of underlying fiscal positions during boom-bust phases. And third, boom-bust phases tend to exacerbate already existing procyclical policy biases, as well as political-economy biases, toward higher spending and public debt ratios. ER -