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The present paper argues that the correct experiment to evaluate the effects of a fiscal adjustment is the simulation of fiscal plans rather than of individual fiscal shocks. The simulation of the fiscal plans adopted by 16 OECD countries over a 30-year period supports the hypothesis that the...
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We investigate the macroeconomic effects of fiscal consolidations based upon government spending cuts, transfers cuts and tax hikes. We extend a narrative dataset of fiscal consolidations, with details on over 3500 measures for 16 OECD countries. We show that government spending cuts and cuts in...
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particular of policies towards freer international trade (cf. Sachs and Werner 1995, Wacziarg and Welch 2003). Political … liberalizations correspond to the event of becoming a democracy. Using a difference-in-difference estimation, we ask what are the …
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