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What are the Effects of Fiscal Policy Shocks?

Mountford, Andrew; Uhlig, Harald - C.E.P.R. Discussion Papers - 2002

We investigate the effects of fiscal policy surprises for US data, using vector autoregressions. We overcome the difficulties that changes in fiscal policy may manifest themselves in variables other than fiscal variables first and that fiscal variables may respond ‘automatically’ to business...

Persistent link: https://www.econbiz.de/10005124017

Fiscal Adjustment to Cyclical Developments in the OECD: An Empirical Analysis Based on Real-Time Data

Beetsma, Roel; Giuliodori, Massimo - C.E.P.R. Discussion Papers - 2008

We explore how fiscal policies in the OECD have responded to unexpected information about the economy during the period 1995-2006. In particular, we first estimate standard fiscal rules using ex-ante data (i.e. forecasts). We then estimate how fiscal policy reacts to new information, especially...

Persistent link: https://www.econbiz.de/10005791832

Debt and the Effects of Fiscal Policy

Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2007

study the effects of fiscal shocks keeping track of the debt dynamics that arises following a fiscal shock, and allowing for … the possibility that taxes, spending and interest rates might respond to the level of the debt, as it evolves over time …. We show that omitting a debt feedback can result in incorrect estimates of the dynamic effects of fiscal shocks. In …

Persistent link: https://www.econbiz.de/10005497892

Public Saving and Policy Coordination in Ageing Economies

Flodén, Martin - C.E.P.R. Discussion Papers - 2002

In the coming decades, the share of people in working age will fall significantly in most developed countries. According to optimal taxation theory, public debts should be reduced before the baby-boom generation retires. I find that if debts are instead maintained at the current levels, welfare...

Persistent link: https://www.econbiz.de/10005497919

On the Relationship between Fiscal Plans in the European Union: An Empirical Analysis Based on Real-Time Data

Beetsma, Roel; Giuliodori, Massimo - C.E.P.R. Discussion Papers - 2007

We investigate the interdependence of fiscal policies, and in particular deficits, in the European Union using an empirical analysis based on real-time fiscal data. There are many potential reasons why fiscal policies could be interdependent, such as direct externalities due to cross-border...

Persistent link: https://www.econbiz.de/10005497943

Budgeting versus implementing fiscal policy in the EU

Beetsma, Roel; Giuliodori, Massimo; Wierts, Peter - C.E.P.R. Discussion Papers - 2009

Using real-time data from Europe's Stability and Convergence Programs, we explore how fiscal plans and their implementation in the EU are determined. We find that (1) implemented budgetary adjustment falls systematically short of planned adjustment and this shortfall increases with the...

Persistent link: https://www.econbiz.de/10005041099

Political Economics and Public Finance

Persson, Torsten; Tabellini, Guido - C.E.P.R. Discussion Papers - 1999

Observed fiscal policy varies greatly across time and countries. How can we explain this variation? This paper surveys the recent literature that has tried to answer this question. We adopt a unified approach in portraying public policy as the equilibrium outcome of an explicitly specified...

Persistent link: https://www.econbiz.de/10005067583

How Large Are the Effects of Tax Changes?

Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2009

significantly different from zero. Following the findings in Bohn (1998), we also experiment with a model that includes debt and the … from the budget constraint makes a difference after 1980, when the response of fiscal variables to the level of the debt …

Persistent link: https://www.econbiz.de/10005082536

Country Heterogeneity and the International Evidence on the Effects of Fiscal Policy

Favero, Carlo A.; Giavazzi, Francesco; Perego, Jacopo - C.E.P.R. Discussion Papers - 2011

policy multiplier. The effect of fiscal policy on output is different depending on the different debt dynamics, the different …

Persistent link: https://www.econbiz.de/10009201121

The Effects of Tax Shocks on Output: Not So Large, But Not Small Either

Perotti, Roberto - C.E.P.R. Discussion Papers - 2011

In a seminal contribution, Romer and Romer (2010) introduce a new dataset of exogenous tax changes and estimate a tax multiplier at 3 years of about -3. These results have been criticized as implausibly large. In this paper, I argue that on theoretical grounds the discretionary component of...

Persistent link: https://www.econbiz.de/10008854466