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Fiscal Sustainability using Growth-Maximising Debt Targets

Checherita-Westphal, Cristina D. - 2012

only to finance public investment. Our estimates suggest that the euro area should target debt levels of around 50% of GDP …-maximizing debt ratio in our OECD sample and comfortably within the Stability and Growth Pact's debt ceiling of 60% of GDP. We also …

Persistent link: https://www.econbiz.de/10013100835

Cost of Borrowing Shocks and Fiscal Adjustment

de Groot, Oliver - 2013

percentage point rise in the cost of borrowing leads to a cumulative improvement of the primary balance-to-GDP ratio of … primary expenditure. The size of the total fiscal adjustment, however, is insufficient to avoid the gross government debt-to-GDP …

Persistent link: https://www.econbiz.de/10013089247

Interactions between Fiscal Multipliers and Sovereign Risk Premium During Fiscal Consolidation : Model Based Assessment for the Euro Area

Lalik, Magdalena - 2017

modelling of government's interest payments for predicting the evolution of debt-to-GDP ratios …

Persistent link: https://www.econbiz.de/10012963411

Fiscal Consolidation in the Euro Area : Long-Run Benefits and Short-Run Costs

Coenen, Günter - 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/10012772045

Fiscal Targets. A Guide to Forecasters?

Paredes, Joan - 2015

Should rational agents take into consideration government policy announcements? A skilled agent (an econometrician) could set up a model to combine the following two pieces of information in order to anticipate the future course of fiscal policy in real-time: (i) the ex-ante path of policy as...

Persistent link: https://www.econbiz.de/10013018008

Does Fiscal Austerity Affect Public Opinion?

Kalbhenn, Anna - 2015

public opinion once we include macro controls (real GDP growth, inflation, unemployment, and whether a country is in a EU …

Persistent link: https://www.econbiz.de/10013025081

Learning About Fiscal Multipliers During the European Sovereign Debt Crisis : Evidence from a Quasi-Natural Experiment

Górnicka, Lucyna - 2018

Identifying fiscal multipliers is usually constrained by the absence of a counterfactual scenario. Our new data set allows overcoming this problem by making use of the fact that recommendations under the EU's excessive deficit procedure (EDP) provide both a baseline no-policy-change scenario and...

Persistent link: https://www.econbiz.de/10012917733

Expansionary Fiscal Consolidations in Europe : New Evidence

Afonso, António - 2021

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/10013317479

Debt Stabilizing Fiscal Rules

Michel, Philippe; von Thadden, Leopold; Vidal, Jean-Pierre - 2021

Unstable government debt dynamics can typically be corrected by various fiscal instruments, like appropriate adjustments in government spending, public transfers, or taxes. This paper investigates properties of state-contingent debt targeting rules which link stabilizing budgetary adjustments...

Persistent link: https://www.econbiz.de/10013318110

Is Fiscal Consolidation Self-Defeating? A Panel-VAR Analysis for the Euro Area Countries

Attinasi, Maria Grazia - 2016

This paper studies the effects of fiscal consolidation on the debt-to-GDP ratio of 11 Euro area countries. Using a … quarterly fiscal Panel VAR allows us to trace out the dynamics of the debt-to-GDP ratio following a fiscal shock and to … as self-defeating if the debt-to-GDP ratio does not decrease compared to the pre-shock level. Our main finding is that …

Persistent link: https://www.econbiz.de/10012999413