We use a dynamic general equilibrium model to quantify the likely long-term impact of a fiscal devaluation on the Portuguese economy. In a context of exogenous growth, and imposing an unchanged budget deficit to GDP ratio in the year the policy is enacted, we find that a tax swap worth 1 percent...

Purpose: The purpose of this paper, on Portugal, is to determine the economic effects of public and private capital spending on health. Design/methodology/approach: The authors use a vector autoregressive model to estimate the elasticities and marginal products of health care investments in...

Pereira and Rodrigues discuss tax reform in Portugal on the basis of a dynamic general equilibrium model where the tax system influences long-term growth through its effects on the demand for capital and labor. The model is simulated by implementing the tax reform package proposed in 1999 by a...

The authors use an endogenous growth dynamic general-equilibrium model, which accommodates the institutional constraints of the Stability and Growth Pact, to study tax reform in Portugal. Simulation results suggest that tax cuts financed in a nondistortionary way increase long-term GDP; i.e.,...

This paper provides an overview of what economists know, or what they think they know about the effects of government deficits and debt on economic performance. It starts by introducing the government's budget constraint and proceeds to address the possible justifications for the issuance of...