Fiscal policy quality key in Western Balkans' economic cycles.
The article examines how governments in the Western Balkans region adjust their spending and taxes in response to economic ups and downs. Using data from 2003 to 2016, the researchers found that fiscal policy in these countries tends to follow the economic cycle. They used different methods to analyze the data and discovered that the quality of government plays a significant role in determining whether fiscal policy is pro-cyclical. By looking at individual countries, they also found that government decisions are influenced by the state of the economy.