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Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation expectations and accelerate consumption expenditure. It is budget neutral and time consistent. We provide preliminary evidence for the effectiveness of such policies using changes in...
Persistent link: https://www.econbiz.de/10013315437
Theoretical discussion on compensating mechanisms involving the Pareto criterion that address inequality rather than absolute welfare is non-existent in trade literature. In a simple HOS model we consider tax-transfer policies that keep the pre-trade degree of inequality unchanged between...
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Fiscal rules have become popular to limit deficits and high debt burdens in industrialized countries. A growing literature examines their impact based on aggregate fiscal performance. So far, no evidence exists on how fiscal rules influence deficit expectations of fiscal policy makers. In the...
Persistent link: https://www.econbiz.de/10010357588
default. Due to a multitude of large scale events in its past, Germany is far from being an exception: In fact, Germany … Germany's public finances against the standard theoretical back‐ground using a unique database, retrieved from multiple …, contradicting the historical perception of Germany as the poster child of European public finance. Given these corresponding breaks …
Persistent link: https://www.econbiz.de/10013085753
We examine whether German state governments manipulated fiscal forecasts before elections. Our data set includes three fiscal measures over the period 1980-2014. The results do not show that electoral motives influenced fiscal forecasts in West German states. By contrast, East German state...
Persistent link: https://www.econbiz.de/10012962666
newly compiled database covering the years 1950‐2011. Unlike previous studies on Germany, we analyze fiscal sustainability …
Persistent link: https://www.econbiz.de/10013047349
In this paper, we extend Henning Bohn's (2008) fiscal sustainability test by allowing for slope heterogeneity and cross-sectional dependence (CD). In particular, our econometric approach is the first that allows fiscal reaction functions (FRF) to capture unobserved heterogeneous effects from...
Persistent link: https://www.econbiz.de/10012917513