Afonso, AntónioSousa, Ricardo M.2010-11-192010-11-192009Afonso, António e Ricardo M. Sousa. 2009. "Assessing long-term fiscal development : evidence from Portugal". Instituto Superior de Economia e Gestão - DE Working papers nº 3-2009/DE/UECE0874-4548http://hdl.handle.net/10400.5/2534Drawing on quarterly data for Portugal, we use a Three-Stage Least Square method and a system of equations to recursively estimate two components of fiscal policy -responsiveness and persistence - and to infer about the sources of fiscal deterioration (improvement). The results suggest that: (i) government spending exhibits higher persistence than government revenue; and (ii) government revenue is more responsive to the business cycle than government spending.engFiscal DeteriorationPortugalworking paper