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Ideologically-charged terminology : austerity, fiscal consolidation, and sustainable governance

Gründler, Klaus; Potrafke, Niklas - 2019

Scholars have been active in investigating causes and consequences of austerity policies. We examine how economists use the term "austerity" in scientific studies and measure austerity in empirical analyses. The sample includes around 3,500 journal articles published in the top 400 journals...

Persistent link: https://www.econbiz.de/10011997341

Fiscal and monetary policy interactions : empirical evidence and optimal policy using a structural New Keynesian model

Muscatelli, V. Anton; Tirelli, Patrizio; Trecroci, Carmine - 2003

This paper examines the interaction of monetary and fiscal policies using an estimated New Keynesian dynamic general equilibrium model for the US. In contrast to earlier work using VAR models, we show that the strategic complementarity or substitutability of fiscal and monetary policy depends...

Persistent link: https://www.econbiz.de/10011511042

Structural reforms and income inequality : who benefits from market-oriented reforms?

Gründler, Klaus; Potrafke, Niklas; Wochner, Timo - 2020

We examine how structural reforms relate to income inequality. We employ many indicators of structural reforms and use data for market and net income inequality. The dataset includes up to 135 countries since 1960. The results do not suggest that market-oriented structural reforms were...

Persistent link: https://www.econbiz.de/10012154916

Experts and epidemics

Gründler, Klaus; Potrafke, Niklas - 2020

Do experts adjust their policy recommendations when the facts change? We conduct a large-scale randomized experiment among 1,224 economic experts across 109 countries that includes two treatments. The first treatment is the geographic and temporal variation in the initial spread of Covid-19...

Persistent link: https://www.econbiz.de/10012287982

Can central banks do the unpleasant job that governments should do?

Dimakopoulou, Vasiliki; Oikonomidēs, Geōrgios; … - 2023

We investigate what happens when the fiscal authorities do not react to rising public debt so that the unpleasant task of fiscal sustainability falls upon the Central Bank (CB). In particular, we explore whether the CB's bond purchases in the secondary market can restore stability and...

Persistent link: https://www.econbiz.de/10014331713

On the optimal size of public sector under rent-seeking competition from state coffers

Park, Hyun; Philippopulos, Apostolēs; Vassilatos, Vanghelis - 2003

This paper incorporates competition for fiscal transfers (or, equivalently, rent seeking from state coffers) into a standard general equilibrium model of economic growth and endogenously chosen fiscal policy. The government generates tax revenues, but then each selfinterested individual agent...

Persistent link: https://www.econbiz.de/10011508090

A simple and flexible alternative to the stability and growth pact deficit ceilings : is it at hand?

Muscatelli, V. Anton; Natale, Piergiovanna; Tirelli, … - 2003

There have been widespread criticisms of EMU fiscal institutions. We consider a simple alternative to the deficit … rule. This ensures fiscal discipline and leaves room for stabilisation policies. For the rule to be credible, only small … changes are required to current EMU institutions. Our scheme performs well in comparison with existing reform proposals and is …

Persistent link: https://www.econbiz.de/10011509363

Fiscal rules : historical, modern, and sub-national growth effects

Gründler, Klaus; Potrafke, Niklas - 2020

We examine how fiscal rules influence economic growth. The results show that constitutional fiscal rules promoted growth from the Industrial Revolution until World War II (1789-1950) and also increased modern economic growth (1985-2015). To address selection on unobservables, we conduct a...

Persistent link: https://www.econbiz.de/10012219378

Fiscal consolidation and its cross-country effects

Philippopulos, Apostolēs; Varthalitis, Petros; … - 2016

We build a new Keynesian DSGE model consisting of two heterogeneous countries participating in a monetary union. We study how public debt consolidation in a country with high debt (like Italy) affects welfare in a country with solid public finances (like Germany). Our results show that debt...

Persistent link: https://www.econbiz.de/10011515282

Can fiscal policy help macroeconomic stabilisation? : evidence from a New Keynesian model with liquidity constraints

Muscatelli, V. Anton; Tirelli, Patrizio; Trecroci, Carmine - 2004

This paper derives a New Keynesian dynamic general equilibrium model with liquidity- constrained consumers and sticky prices. The model allows a role for both government spending and taxation in the DGE model. The model is then estimated using US data. We demonstrate that there seems to be a...

Persistent link: https://www.econbiz.de/10011402458