Dynamic Interactions Between Public Finances and Economic Activity in Germany

Revenue Elasticities in Euro Area Countries

“…One important application is the so-called Blanchard-Perotti approach. For a discussion see, for example, Caldara and Kamps (2012),Baum and Koester (2011) orPriesmeier (2014). SeeDolls et al (2015) for an overview on automatic stabilization in the euro area under the framework of the Stability and Growth Pact.2 For details see the discussion in section 2.ECB Working Paper 1989, January 2017…”