Utilizing data from 133 countries over the period 1950–2014, we identify fiscal space as a key factor underlying cyclicality of policies. We find that less induces greater procyclicality and show this relationship is nonlinear; in bottom tail distribution need to make significant improvements before they can perform countercyclical policy. Given increasingly dominant role action downturns, high...

I ncreased expenditures and the government size is an important issue in public sector economics. In this regard, various theories have been developed in order to justify the reasons for the public expenditure growth, and the theories have been empirically tested. One of the outlooks explaining the government expenditures growth and the economy size, is fiscal illusion approach. According ...

There has been a surge in the public debt profile of Nigeria recent years. This paper examines usefulness deficit financing plans based on driving industrial sector output performance an economy with sufficient borrowing space. The utilizes ARDL cointegration technique to investigate both short-run dynamics hypothesized relationship as well long-run dimension among debt, fiscal space, and Niger...