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The economic effects of exogenous fiscal shocks in Spain: a SVAR approach

de Castro Fernández, Francisco; Hernández de Cos, Pablo - 2006

deficits and lower output in the medium and long term. Tax increases are found to drag economic activity in the medium term …

Persistent link: https://www.econbiz.de/10011604693

Monetary conservatism and fiscal policy

Adam, Klaus; Billi, Roberto M. - 2006

Does an inflation conservative central bank à la Rogoff (1985) remain desirable in a setting with endogenous fiscal policy? To provide an answer we study monetary and fiscal policy games without commitment in a dynamic stochastic sticky price economy with monopolistic distortions. Monetary...

Persistent link: https://www.econbiz.de/10011604709

Fiscal convergence before entering the EMU

Onorante, Luca - 2006

The monetary integration of the acceding countries will proceed in several distinct steps, starting with membership in the European Union (EU), followed by participation in the so-called Exchange Rate Mechanism (ERM) II and ultimately entry into the euro area. This paper addresses the question...

Persistent link: https://www.econbiz.de/10011604710

Expansionary fiscal consolidations in Europe: new evidence

Afonso, António - 2006

In order to assess the existence of expansionary fiscal consolidations in Europe, panel data models for private consumption are estimated for the EU15 countries, using annual data over the period 1970–2005. Three alternative approaches to determine fiscal episodes are used, and the level of...

Persistent link: https://www.econbiz.de/10011604721

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

The cyclicality of consumption, wages and employment of the public sector in the euro area

Lamo, Ana; Pérez, Javier J.; Schuknecht, Ludger - 2007

This study examines the business cycle behaviour of public consumption and its main components; the public wage bill (including compensation per employee and public employment) and intermediate consumption in the euro area aggregate, euro area countries and a group of selected non-euro area OECD...

Persistent link: https://www.econbiz.de/10011604803

The dynamic behaviour of budget components and output

Afonso, António; Claeys, Peter - 2007

reversals in tax policies, which are unmatched by expenditure adjustments. As a consequence, deficits rise when economic …

Persistent link: https://www.econbiz.de/10011604821

What do we really know about fiscal sustainability in the EU? A panel data diagnostic

Afonso, António; Rault, Christophe - 2007

We assess the sustainability of public finances in the EU15 over the period 1970-2006 using stationarity and cointegration analysis. Specifically, we use panel unit root tests of the first and second generation allowing in some cases for structural breaks. We also apply modern panel...

Persistent link: https://www.econbiz.de/10011604866

Fiscal forecasting: lessons from the literature and challenges

Leal, Teresa; Pérez, Javier J.; Tujula, Mika; Vidal, … - 2007

While fiscal forecasting and monitoring has its roots in the accountability of governments for the use of public funds in democracies, the Stability and Growth Pact has significantly increased interest in budgetary forecasts in Europe, where they play a key role in the EU multilateral budgetary...

Persistent link: https://www.econbiz.de/10011604889

Economic growth and budgetary components: a panel assessment for the EU

Afonso, António; González Alegre, Juan - 2008

In this paper we test whether a reallocation of government budget items can enhance long-term GDP growth in a set of European countries. We apply modern panel data techniques to the period 1970-2006, and we use three alternative dependent variables in a growth regression: economic growth, total...

Persistent link: https://www.econbiz.de/10011604894