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Bringing French public debt down: The options for fiscal consolidation

Egert, Balazs - 2012

significant potential for cutting tax expenditures. Furthermore, eliminating distortions in the tax base would encourage economic …

Persistent link: https://www.econbiz.de/10010288248

Political Competition and the Limits of Political Compromise

Cunha, Alexandre B.; Ornelas, Emanuel - 2014

We consider an economy where competing political parties alternate in office. Due to rent-seeking motives, incumbents have an incentive to set public expenditures above the socially optimum level. Parties cannot commit to future policies, but they can forge a political compromise where each...

Persistent link: https://www.econbiz.de/10010352418

Fiscal sustainability and public debt in an endogenous growth model

Fernández-Huertas Moraga, Jesús; Vidal, Jean-Pierre - 2004

This paper investigates fiscal sustainability in an overlapping generations economy with endogenous growth coming from human capital formation through educational spending. We assess how budgetary imbalances affect economic dynamics and the outlook for economic growth, thereby providing a...

Persistent link: https://www.econbiz.de/10011604441

The short-term impact of government budgets on prices: evidence from macroeconomic models

Henry, Jérôme; Hernández de Cos, Pablo; Momigliano, … - 2004

This paper reviews the existing empirical evidence on the short-term impact on prices of fiscal variables and assesses it against new results from harmonised simulations, conducted with six well-established econometric models used by the ECB and five national central banks (NCBs) of the...

Persistent link: https://www.econbiz.de/10011604442

Fiscal discipline and the cost of public dept service: some estiames for OECD countries

Ardagna, Silvia; Caselli, Francesco; Lane, Timothy - 2004

We use a panel of 16 OECD countries over several decades to investigate the effects of government debts and deficits on long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative to GDP increases contemporaneous long-term interest...

Persistent link: https://www.econbiz.de/10011604457

Does government spending crowd in private consumption? Theory and empirical evidence for the euro area

Coenen, Günter; Straub, Roland - 2005

In this paper, we revisit the effects of government spending shocks on private consumption within an estimated New-Keynesian DSGE model of the euro area featuring non-Ricardian households. Employing Bayesian inference methods, we show that the presence of non-Ricardian households is in general...

Persistent link: https://www.econbiz.de/10011604559

Tax reform and labour-market performance in the euro area: a simulation-based analysis using the New Area-Wide Model

Coenen, Günter; McAdam, Peter; Straub, Roland - 2007

at the European Central Bank to examine the potential benefits and spillovers of reducing labour-market distortions … caused by euro area tax structures. Our analysis shows that lowering tax distortions to levels prevailing in the United … States would result in an increase in hours worked and output by more than 10 percent. At the same time, tax reductions would …

Persistent link: https://www.econbiz.de/10011604793

Fiscal consolidation in the euro area: long-run benefits and short-run costs.

Coenen, Günter; Mohr, Matthias; Straub, Roland - 2008

In this paper, we examine the macroeconomic effects of alternative fiscal consolidation policies in the New Area-Wide Model (NAWM), a two-country open-economy model of the euro area developed at the European Central Bank (cf. Coenen et al., 2007). We model fiscal consolidation as a permanent...

Persistent link: https://www.econbiz.de/10011604948

Globalisation and the euro area: simulation based analysis using the New Area Wide Model

Straub, Roland; Jacquinot, Pascal - 2008

labour markets would amplify the benefits associated with globalisation. …

Persistent link: https://www.econbiz.de/10011604953

Fiscal policy shocks in the euro area and the US: an empirical assessment

Burriel, Pablo; de Castro Fernández, Francisco; … - 2009

We analyse the impact of fiscal policy shocks in the euro area as a whole, using a newly available quarterly dataset of fiscal variables for the period 1981-2007. To allow for comparability with previous results on euro area countries and the US, we use a standard structural VAR framework, and...

Persistent link: https://www.econbiz.de/10011605179