Fiscal stabilization policy and fiscal institutions

Leith, C. and Wren-Lewis, S. (2005) Fiscal stabilization policy and fiscal institutions. Oxford Review of Economic Policy, 21(4), pp. 584-597. (doi: 10.1093/oxrep/gri033)

Full text not currently available from Enlighten.

Publisher's URL:


In this paper we analyse counter-cyclical fiscal policy within the context of a microfounded analysis of business-cycle stabilization. We show that tax and spending instruments can have a useful counter-cyclical role, even after allowing for the distortionary nature of the instruments and the need for debt sustainability. A critical barrier to the use of fiscal instruments may be political economy concerns, and we survey recent suggestions involving alternative fiscal policy institutions.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Wren-Lewis, Prof Simon and Leith, Professor Campbell
Authors: Leith, C., and Wren-Lewis, S.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Oxford Review of Economic Policy
Publisher:Oxford University Press
ISSN (Online):1460-2121

University Staff: Request a correction | Enlighten Editors: Update this record

Project CodeAward NoProject NamePrincipal InvestigatorFunder's NameFunder RefLead Dept
388121Reinstating fiscal policy as a stabilisation deviceCampbell LeithEconomic & Social Research Council (ESRC)RES-156-25-0003BUS - ECONOMICS