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Tax cuts starve the beast! : evidence from Germany

Fuest, Clemens; Neumeier, Florian; Stöhlker, Daniel - 2019

The 'starving the beast' hypothesis claims that tax cuts lead to lower public spending, rather than higher debt levels and higher taxes in the future. This paper uses the institutional setting of German fiscal federalism to its advantage in order to explore how fiscal policy reacts to exogenous...

Persistent link: https://www.econbiz.de/10012157329

Do large cabinets favor large governments? : evidence from Swiss sub-federal jurisdictions

Schaltegger, Christoph A.; Feld, Lars P. - 2004

The fiscal commons problem is one of the most prominent explanations of excessive spending and indebtedness in political economics. The more fragmented a government, the higher its spending, deficits and debt. In this paper we investigate to what extent this problem can be mitigated by different...

Persistent link: https://www.econbiz.de/10011451337

Fiscal consolidation and automatic stabilization : new results

Dolls, Mathias; Fuest, Clemens; Peichl, Andreas; … - 2019 - This version: December 17, 2019

We analyze how the combined effect of automatic stabilizers and discretionary changes in taxbenefit systems have affected the cushioning of income shocks in the Euro zone and the EU-27 in the period 2007-2014. We propose a new summary measure of the combined effect of automatic stabilizers and...

Persistent link: https://www.econbiz.de/10012154947

Fiscal sustainability in the EU after the global crisis : is there any progress?

Wysocki, Maciej; Wójcik, Cezary - 2018

which led to a one-off redemption of T-bonds in amount of 8.5% of GDP. The analysis also reveals a cycle of structural …

Persistent link: https://www.econbiz.de/10011900847

Macroeconomic effects of fiscal adjustment : a tale of two approaches

Yang, Weonho; Fidrmuc, Jan; Ghosh, Sugata - 2013

We investigate the short-term effects of fiscal adjustment on economic activity in 20 OECD countries from 1970 to 2009. We compare two approaches: the traditional approach based on changes in cyclically adjusted primary balance (CAPB) and the narrative approach based on historical records....

Persistent link: https://www.econbiz.de/10010126403

A quantitative evaluation of the European commiccion's fiscal governance proposal

Darvas, Zsolt M.; Welslau, Lennard; Zettelmeyer, Jeromin - 2023

debt above 60 percent or deficits above 3 percent of GDP. We find that the proposed framework would require ambitious … fiscal adjustment: on average, more than 2 percent of GDP over the medium term, in addition to the adjustment that is already … framework. We also find that for most countries with debt above 60 percent of GDP, these adjustment requirements are driven by …

Persistent link: https://www.econbiz.de/10014372855

Who cares? : attitudes towards redistribution and fiscal austerity

Brown, Sarah; Kontonikas, Alexandros; Montagnoli, Alberto; … - 2021

We present new evidence showing that fiscal austerity strengthens support for redistribution, especially for the relatively well-off. Our theoretical model proposes two mechanisms to explain this heterogeneity in support for redistribution: "altruism" and "appreciation". We test our theoretical...

Persistent link: https://www.econbiz.de/10012668262

The impact of austerity policies on local income : evidence from Italian municipalities

Cerrato, Andrea; Filippucci, Francesco - 2022

Persistent link: https://www.econbiz.de/10013207012

Revenue for EMU : a contribution to the debate on fiscal union

Iara, Anna - 2016

In the wake of the euro area crisis, the debate on instruments to deepen economic integration among its members has intensified, among others putting forward a fiscal stabilization capacity for EMU members. Contributions made so far to further this idea have mostly concentrated on the...

Persistent link: https://www.econbiz.de/10011436156

Euro-area fiscal stance : from theory to practical implementation

Bénassy-Quéré, Agnès - 2016

Despite large automatic stabilizers, the performance of the Euro area as a whole in terms of fiscal stabilization is relatively poor. This report argues that a meaningful fiscal stance for the Euro area should rely on the current account as a complement to the output gap, and be coordinated only...

Persistent link: https://www.econbiz.de/10011521835