Adjusting fiscal (Price and Dang)

Adjusting fiscal balances for asset price cycles, by Robert Price and Thai-Thanh Dang. This paper develops a method for adjusting structural budget balances for asset price cycles and presents estimates of structural budget balances corrected for house-price and equity-price cycles for OECD countries. The analysis is retrospective, but an important consideration has been to improve the identification of cyclical revenue fluctuations as they recognise the source of revenue “surprises”. http://www.oecd-ilibrary.org/economics/adjusting-fiscal-balances-for-asset-price-cycles_5kgc42t3zqkl-en