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The Electoral Consequences of Large Fiscal Adjustments
Alesina, Alberto F. - 2011
The conventional wisdom regarding the political consequences of large reductions of budget deficits is that they are very costly for the governments which implement them: they are punished by voters at the following elections. In the present paper, instead, we find no evidence that governments...
Persistent link: https://www.econbiz.de/10013117557
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The "Austerity Myth" : Gain Without Pain?
Perotti, Roberto - 2011
As governments around the world contemplate slashing budget deficits, the "expansionary fiscal consolidation hypothesis" is back in vogue. I argue that, as a statement about the short run, it should be taken with caution. I present four detailed case studies, two - Denmark and Ireland -...
Persistent link: https://www.econbiz.de/10013118837
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The U.S. Fiscal Problem : Where We are, How We Got Here and Where We're Going
Auerbach, Alan J. - 2011
This paper deals with several issues regarding the causes and implications of recent and projected U.S. federal budget deficits. It considers why deficits have remained so large in spite of deficit reduction efforts, evaluates the impact of the recent policies of the Clinton administration, and...
Persistent link: https://www.econbiz.de/10013125133
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The Design of Fiscal Adjustments
Alesina, Alberto F. - 2012
This paper offers three results. First, in line with the previous literature, we confirm that fiscal adjustments based mostly on the spending side are less likely to be reversed. Second, spending based fiscal adjustments have caused smaller recessions than tax based fiscal adjustments. Finally,...
Persistent link: https://www.econbiz.de/10013100133
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The Output Effect of Fiscal Consolidations
Alesina, Alberto F. - 2012
The present paper argues that the correct experiment to evaluate the effects of a fiscal adjustment is the simulation of fiscal plans rather than of individual fiscal shocks. The simulation of the fiscal plans adopted by 16 OECD countries over a 30-year period supports the hypothesis that the...
Persistent link: https://www.econbiz.de/10013101511
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Over-Optimistic Official Forecasts in the Eurozone and Fiscal Rules
Frankel, Jeffrey A. - 2012
Why do countries find it so hard to get their budget deficits under control? Systematic patterns in the errors that official budget agencies make in their forecasts may play an important role. Although many observers have suggested that fiscal discipline can be restored via fiscal rules such as...
Persistent link: https://www.econbiz.de/10013102194
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Liquidity Traps and Expectation Dynamics : Fiscal Stimulus or Fiscal Austerity?
Benhabib, Jess - 2012
shocks that push interest rates to the zero bound, a temporary fiscal stimulus or a policy of fiscal austerity, appropriately …
Persistent link: https://www.econbiz.de/10013106020
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'Fiscal Devaluation' and Fiscal Consolidation : The Vat in Troubled Times
De Mooij, Ruud A. - 2013
This paper focuses on two core tax design issues that arise in addressing current fiscal challenges It first explores the idea, prominent in troubled Eurozone countries, of a 'fiscal devaluation:' shifting from social contributions to the VAT as a way to mimic a nominal devaluation. Empirical...
Persistent link: https://www.econbiz.de/10013089424
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Austerity in the Aftermath of the Great Recession
House, Christopher L. - 2017
We examine austerity in advanced economies since the Great Recession. Austerity shocks are reductions in government … purchases that exceed reduced-form forecasts. Austerity shocks are statistically associated with lower real GDP, lower inflation … advanced economies generates a multiplier consistent with the data. Counterfactuals suggest that eliminating austerity would …
Persistent link: https://www.econbiz.de/10012963180
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Political Economy of Sovereign Debt : A Theory of Cycles of Populism and Austerity
Dovis, Alessandro - 2016
generously on transfers and keeps the inequality low. In the second regime, it implements austerity-like policies by cutting …
Persistent link: https://www.econbiz.de/10012999981