Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format ECO/WKP(2005)21 Unclassified English -Or. English ECO/WKP(2005)21 2 ABSTRACT/RÉSUMÉ Measuring cyclically-adjusted budget balances for OECD countriesAn important tool in the analysis of fiscal policy is the distinction between structural and cyclical components of the budget balance. This paper describes work undertaken to re-estimate and re-specify the elasticities underlying the Economics Department's calculations of cyclically-adjusted budget balances. Account is taken of tax reforms introduced since the previous updating exercise. A number of methodological innovations have been introduced to better account for the lags between taxes and activity and to ensure greater cross-country consistency in the estimates. The methodology underlying cyclical adjustment of expenditures has also been reviewed. Finally, the country coverage has been extended. The overall results are broadly consistent with the previous set of estimates. The sensitivity of government net lending to a 1 percentage point change in the output gap remains at around 0.5% of GDP for OECD economies on average.

After the buoyancy of stock markets in the late nineties, share prices have generally trended downwards since 2001. By contrast, house prices have continued to increase, rising more rapidly than the general price level in several countries. These developments have led to renewed interest in the impact of asset prices on consumption and overall demand. This paper analyses the roles of household financial wealth and housing wealth across G7 countries (with the exception of Germany), in determining private consumption. It provides some estimates of the sensitivity of consumption to various forms of wealth and tests whether these sensitivities have changed over time. The impacts of recent financial and housing market developments on consumption are also quantified. The main results are, first, that for all countries, wealth channels are identified, second, that these effects vary significantly across countries, and third that for some countries, their importance has tended to rise markedly over the recent past.

This article examines various efficiency and equity aspects related to the skill acquisition of young people and older adults. The analysis suggests that human capital investment is associated with significant labour-market gains for individuals, including higher post-tax earnings and better employment prospects, which exceed the investment costs, mainly foregone earnings and tuition fees, by a significant margin. It also shows that the net benefits are strongly influenced by policy related factors, such as study length, tuition subsidies and student support. Overall, the estimates reported in the article indicate that there are strong incentives for the average student to continue studying beyond the compulsory schooling age, and also point to the benefits of such investment in education for society as a whole. However, the net gains fall with age, mainly reflecting a shorter period to take advantage of the benefits that come with education. Finally, the article notes that students in higher education tend to come from more affluent backgrounds and that they benefit from large public subsidies, whereas young people from disadvantaged backgrounds are less likely to participate in tertiary education and thus benefit from public subsidies.

This paper examines the linkages between housing markets and the business cycle in OECD countries, focusing on how differences in the degree of resilience to economic shocks can be affected by the structural characteristics of housing and mortgage markets. The paper focuses specifically on: the transmission channel from housing wealth to consumption and on the factors behind house price variability, which help to determine whether the housing sector plays a stabilising role or not.

Multiple sclerosis (MS) is one of the most frequently occurring disabling neurological disorders among young adults in Canada. It is a chronic inflammatory disorder of the central nervous system (CNS) that is thought to be immune mediated in nature. An estimated 55,000–75,000 Canadians suffer from this debilitating disease. Starting in the mid-1990s, we witnessed the beginning of a new era in the treatment of MS. Treatments finally became available to help modify the course of the disease. Early initiation of treatment soon after diagnosis has become the expectation in many MS clinics, warranting many decisions to be made by the patient with the assistance of their health care team. Currently, there are two categories of disease-modifying therapies (DMTs) available: immunomodulatory and immunosuppressant agents. Although disease-modifying therapies are not a cure and are only moderately effective, they offer a possible slowing of any progression that may occur over time, a decrease in relapse activity, and a decrease in the amount of new lesions developing in the CNS found on magnetic resonance imaging. Not only have these agents been partly effective but up to now they have only been available parenterally, which has many limitations, including a major factor in determining the best outcome for the treatment: adherence. Four new DMTs will likely become available to Canadians over the next five years. Fingolimod, cladribine, teriflunomide, and laquinimod are likely to be marketed as the first oral DMTs in Canada. The US Food and Drug Administration approved fingolimod in September 2010 as a first-line therapy for relapsing forms of MS. Dalfampridine is also available in the US as an agent able to improve walking. Even if these agents present with higher efficacy and a promising safety and tolerability profile, thus possibly demonstrating better adherence, it will be imperative for the health care professionals to focus on monitoring and supporting the patient to ensure reliable reporting of side effects and to improve overall adherence. In the near future, more treatments will become available to the MS population, and choices will become even more complex so that ongoing support, open communication, and education are required to tame any uncertainties about decisions made regarding treatments.