Berset, Simon Huber, Martin Schelker, Mark 2022-03-16 We study the impact of fiscal revenue shocks on local fiscal policy. We focus on the very volatile revenues from the immovable property gains tax in the canton of Zurich, Switzerland, and analyze fiscal behavior following large and rare positive and negative transitory revenue shocks. We apply causal machine learning strategies and implement the post-double-selection LASSO method to identify the effect of revenue shocks on public finances. We find that local policymakers predominantly smooth transitory fiscal shocks. application/pdf https://folia.unifr.ch/global/documents/324806 https://folia.unifr.ch/documents/324806/files/bersethuberschelkeritax2022fiscalresponsetorevenueshocks.pdf eng info:eu-repo/semantics/altIdentifier/doi/10.1007/s10797-022-09727-z info:eu-repo/semantics/altIdentifier/issn/0927-5940 info:eu-repo/semantics/openAccess CC BY International Tax and Public Finance. - Springer Science and Business Media LLC. - 2023, vol. 30, no. 3, p. 814-848 Economics and Econometrics Finance Accounting info:eu-repo/classification/udc/33 The fiscal response to revenue shocks http://purl.org/coar/resource_type/c_6501