Showing 1 - 10 of 52
This article discusses the reduction in the tax burden resulting from the Dutch tax reform that was implemented in 2001. The consumption growth lagged behind the substantial increase in purchasing power. This 'consumption puzzle' is put in the perspective of the relatively high consumption...
Persistent link: https://www.econbiz.de/10005106739
We explore the international spillovers from fiscal policy shocks via trade in Europe. A fiscal expansion stimulates domestic activity, which leads to more foreign exports and, hence, higher foreign output. To quantify this, we combine a panel VAR model in government spending, net taxes and GDP...
Persistent link: https://www.econbiz.de/10005021822
This paper re-assesses findings of the literature that the systematic debt stabilising response in fiscal policy has been sufficiently strong for keeping debt ratios on a sustainable path in Euro area countries. In doing so, it adjusts the standard approach to the specific context of Economic...
Persistent link: https://www.econbiz.de/10005021825
Empirical fiscal policy reaction functions based on ex post data cannot be said to describe fiscal policymakers intentions, since they utilise data which did not exist when their decisions were made. A characterisation of what fiscal policymakers were trying to do requires real time data. This...
Persistent link: https://www.econbiz.de/10005021848
We use an overlapping generations model to show that a bail-out is the optimal response to a fiscal crisis when the level of integration in a Monetary Union is high and the departure from Ricardian equivalence is significant. As it may not be optimal expost, the no bail-out rule is not credible...
Persistent link: https://www.econbiz.de/10009275472
This paper evaluates the cyclicality, inertia and effect of EU accession on fiscal policy in Central and Eastern Europe using a real time dataset. Budget balances are found to react in a stabilising way to economic activity, and they are less inert than is typically found in Western Europe....
Persistent link: https://www.econbiz.de/10004963329
This paper investigates the role of self-enforced national expenditure rules in limiting the expenditure bias and procyclical expenditure increases/decreases due to revenue windfalls/shortfalls. A simple model predicts that expenditure rules can have the intended effects, but only if the...
Persistent link: https://www.econbiz.de/10005101815
Using data for 17 OECD countries from 1983 to 2003, this paper establishes a non-linear relationship between private consumption and the level of government debt. In countries with a high level of government debt, a fiscal expansion is partly crowded out by a fall in private consumption. In...
Persistent link: https://www.econbiz.de/10005101851
This paper examines the interaction of real exchange rates and current account movements in open economies subject to monopolistic competition with sticky price-setting behavior and distortionary taxes. We find that the correlations between fiscal balances and the current account depend on the...
Persistent link: https://www.econbiz.de/10005106657
The educational attainment of the Dutch labour force is lower than in neighbouring countries. Despite this worrying picture, and the fact that financial resources devoted to education are relatively small, it is argued that increasing public expenditure is not the obvious answer. As the social...
Persistent link: https://www.econbiz.de/10005106757