Cleaning Services, GAP Factor
, Screencom, Lodge Security, TIS Expo Systems, Green Stylist, Orange Orbit, Liquid Chefs, Sketch Advertising, Station One Designs, Something Old Something New, and RSA Draping and Balloon Specialists.
Surprisingly, the world output gap factor even significantly explains the world factor in cyclically adjusted surplus measures, which indicates that OECD cyclical adjustments do not remove all business cycle variation in such measures.
In the bivariate regressions, the output gap factor is positive and significant at the 1 percent level for all four fiscal measures, presumably through the familiar taxing and spending channels.
As noted in the section "Estimation Results for Predetermined Variables," the unexpected inflation factor is positively correlated with the output gap factor, so the significantly positive coefficients on the unexpected inflation factor likely capture similar business cycle effects.
The significance of the output gap factor confirms that the cyclical adjustments do not completely capture international business cycle effects.