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This paper investigates the average impact of government debt on per-capita GDP growth in twelve euro area countries over a period of about 40 years starting in 1970. It finds a non-linear impact of debt on growth with a turning point—beyond which the government debt-to-GDP ratio has a...
Persistent link: https://www.econbiz.de/10011605283
The financial crisis of 2008/2009 has left European economies with a sizeable public debt stock bringing back the question what factors help to reduce these fiscal imbalances. Using data for the period 1985-2009 this paper identifies factors determining major public debt reductions. On average,...
Persistent link: https://www.econbiz.de/10011605287
Abstract This paper conducts an empirical investigation of the effects of temporary versus persistent fiscal policy shocks. Using data from the US I show that short lived fiscal expansions have a positive effect on output and consumption; while persistent fiscal shocks generate negative effects...
Persistent link: https://www.econbiz.de/10010316756
In the process of the German unification and especially after the formal unification in October 1990, Eastern Germany … was supported by West Germany by a lot of measures. The main purposes were to improve the infrastructure, to stimulate … from the period of reconstruction in West Germany after World War II) was available. The methods of financing are described …
Persistent link: https://www.econbiz.de/10010265344
trends. It finds that, all sample countries except Germany applied expansionary expenditure policies. This resulted in much …
Persistent link: https://www.econbiz.de/10011605312
This paper analyzes German and Spanish fiscal policy using simple policy rules. We choose Germany and Spain, as both … 1990s.We focus on the question, how fiscal policy behaves under rising public debt ratios. It is found that both Germany … and seems to be non-permanent in the case of Germany. …
Persistent link: https://www.econbiz.de/10010263682
In this paper we test whether German public debt has been sustainable by resorting to a test proposed by Bohn (1998). We apply non-parametric and semi-parametric regressions with time depending coefficients. This test shows that the mean of the coefficient relevant for sustainability has been...
Persistent link: https://www.econbiz.de/10010261129
In a New Keynesian DSGE model with non-Ricardian consumers, we show that automatic stabilization according to a countercyclical spending rule following the idea of the debt brake is well suited both to steer the economy and in terms of welfare. In particular, the adjustment account set up to...
Persistent link: https://www.econbiz.de/10010298840
, fiscal data; and (vii) analyze empirical evidence from the U.S., the U.K., Germany, and Italy. The results show that …
Persistent link: https://www.econbiz.de/10011605037
This paper analyzes Germany's fiscal policy position. Half of GDP passes through the hands of government, a high debt … GDP is 4. This trend will intensify in an aging society. All these factors weaken the prospects for reform that Germany …
Persistent link: https://www.econbiz.de/10010265427