We analyze the effect of budget consolidation on income inequality in 17 OECD countries while controlling for political and ideological differences. We find that the impact of fiscal adjustments on the Gini coefficient does not depend on the political party in power, but on the type of...

This paper analyzes the short-term effects of fiscal adjustments on macroeconomic aggregates for a panel of 20 OECD countries during 1970--2008. We find that episodes of budget consolidation have an insignificant impact on growth and consumption. On the other hand, fiscal adjustments are...

We use a panel of 21 OECD countries from 1970 to 2009 to investigate the effects of different fiscal adjustment strategies on long-term interest rates - a key fiscal indicator reflecting the costs of government debt service. As Europe's sovereign debt crisis has shown, governments confronted...