# The relationship between structural budget balance and cyclically adjusted budget balance?

What is the relationship between structural budget balance and the cyclically adjusted budget(CAB) balance?

I know that $PB=\textit{CAB}+AS$, where $PB$ is primary budget, and $AS$ are the automatic stabilizers(tax revenues, unemployment benefits, etc. $AS$ term is counter-cyclical, i.e negative in recessions, positive in booms).

My question is, how do I relate, mathematically, the structural budget and the CAB?

Any help would be appreciated.

## 2 Answers

After searching, I found out that Structural Budget is OECD nomenclature for Cyclically Adjusted Budget.

Here's a link.

• Please use the edit link on your question to add additional information. The Post Answer button should be used only for complete answers to the question. - From Review – Giskard Jun 22 '16 at 20:18
• @denesp Added a link. Not sure what else could be added. – An old man in the sea. Jun 22 '16 at 23:28
• Sorry, my bad. Yesterday I misunderstood the question. This is a proper answer. – Giskard Jun 23 '16 at 6:17

Cylical adjustment is simply a trendline based on past GDP. The structural budget balance is the balance with this trend removed. It is similar to seasonal adjustments, except over a longer period.